Crypto expert Ali identified a pattern in XRP that he thinks might have an effect on its price.
In contrast to numerous cryptocurrencies that experienced huge drops, Ali pointed out that XRP has continued to trade above the $0.50 level following the SEC’s filing of charges against Binance and Coinbase.
The Sandbox (SAND), one of the coins named in the SEC action, had a loss of as much as 18% at one point during the week. Although its losses were smaller, the price of XRP also fell.
Ali brought up an interesting point: while though this could appear to be a sign of strength, it might not be good for the price of XRP. His theory might be the beginning of profit-taking following the spectacular price movement of XRP over the previous few weeks.
The price of XRP has begun to decouple from the broad market trend in recent weeks. The price of XRP has been rising since May 11, reaching a high of $0.547 on June 4 before entering a consolidation phase.
Like the rest of the cryptocurrency market, XRP is currently trading at $0.52, slightly down over the past 24 hours.
There are now two possible outcomes: either XRP continues its decoupling trend from the rest of the market or it stops. Right now, it appears that the latter is true.
The two largest cryptocurrency exchanges, Binance and Coinbase, were charged by the SEC this week. The SEC also attempted to block access to Binance assets.US currency.
Santiment, an on-chain analytics company, anticipates that price will continue to be inversely correlated with social volume on current market occurrences.
It also expresses the opinion that the extent to which this is a deal will determine how far the price may rebound, and advises traders to keep an eye on events over the next one to three weeks.
Technically, buyers continue to have an edge in the case of XRP because the daily RSI is still above 60. However, as events play out in the next days and weeks, traders should keep a watch on the broader market direction.
