According to a new alert from crypto analytics company 100eyes Crypto Scanner, XRP, the digital currency linked to Ripple, is edging closer to a horizontal support level.
This occurs at a time when the whole cryptocurrency market is struggling, with CoinGecko statistics indicating that Ethereum is on the down and that Bitcoin is on course to go below $26,000.
In the context of trading, approaching “horizontal support” describes a situation in which an asset, such as XRP, approaches a certain price level where it has historically attracted purchasing interest, so halting further price declines.
Given Ripple’s recent legal victory over the U.S. Securities and Exchange Commission (SEC), the fact that XRP is getting close to horizontal support is interesting. The contentious digital asset seems to be reflecting the general market mood, which is still gloomy.
According to CoinGecko, the price of XRP has dropped 1.2% over the last week and is currently trading at around $0.51 with a 24-hour volume of close to $964 million.
Despite recent favourable court judgements in the crypto sector, there has been a general market decline. An important victory over the SEC was obtained by Grayscale, a reputable cryptocurrency asset management, mirroring Ripple’s own success.
Despite this, the market has not gained positive momentum as a result of these legal achievements. The market leader, Bitcoin, has lost 4.0% in the past day and is on pace to dip below the $26,000 level, raising concerns about the near-term prospects for digital assets.
The cryptocurrency market is still generally in a state of cautious optimism restrained by harsh reality. It remains to be seen in the case of XRP whether it will break through the horizontal support in a downward spiral or bounce back once it reaches it.
