XRP retreats to support after Hinman documents release hype
XRP price has dipped to near $0.50 after jumping to above $0.55 on Tuesday.
The gains followed the eventual release of documents related to a speech by former SEC official Willian Hinman.
Analysts say XRP’s spike might have been a “sell the news event” although upside potential remains if market conditions align.
The price of XRP, the cryptocurrency of blockchain company Ripple, has declined to support at $0.50 after the momentum that pushed it above $0.55 on Tuesday faded dramatically a day later.
XRP’s rally had been propped largely by the hype surrounding the release of key documents from a 2018 speech by then SEC official William Hinman.
While the token became crypto mega caps’ largest gainer as the documents were finally released to the public, today saw the coin flip -8.4% earlier to give up the upside ground.
The dip, which comes as the broader crypto market mirrors action on Wall Street amid investor anxiety of what comes next after today’s Fed rate decision, threatens to push XRP beneath the critical support area.
XRP price: analysts’ take
On Tuesday, crypto investor and analyst Scott Melker pointed out that XRP had “one of the clearest charts.”
This is because the price had broken downtrend, before retesting the area as well as the 50 MA as support. He noted that bulls faced a clear resistance at $0.5597, which is where XRP retreated from and likely marked the “sell the news” point following the release of the Hinman files.
Melker predicted that XRP/USD would look to retest $0.915 if the upside momentum held. That appears to be in danger with the price of XRP down 4.5% in the past 24 hours as of 10:40 am ET. Any further declines could see bears target recent support in the $0.46 region.
However, XRP is still within a symmetrical triangle on the weekly chart and crypto YouTuber and trader Crypto Rover says a breakout is imminent. As a continuation pattern, the potential flip upwards is suggested by the move to the upper converging trendline.
XRP price chart. Analyst Crypto Rover says breakout is imminent. Source: Crypto Rover on Twitter
Should positive sentiment permeate the markets, likely from a new development that favours Ripple in its battle against the SEC, XRP could break out and target the psychological $1.
On the flipside, a reversal/breakdown will impact the token’s price and welcome fresh bearish pressure.
The post XRP retreats to support after Hinman documents release hype appeared first on CoinJournal.
