The value of XRP has declined in recent weeks, reflecting the overall sentiment in the crypto market. However, cryptocurrency analyst iDrag0xxx highlighted a slowdown in bearish momentum on the weekly XRP chart in a post on TradingView on September 5th.
The analyst noted that whales holding XRP pushed the price to the point where the token touched the 0.78 Fibonacci level. This level, considered the main entry point for large holders, indicates the possibility of a significant price reversal.
The key indicator mentioned in the analysis is the neural network indicator, which represents an optimistic outlook for XRP. This indicator has already crossed the Hull moving average, which is a bullish signal foreshadowing a potential move higher. This is considered a positive sign for the cryptocurrency.
The analysis also outlines specific XRP target levels for the coming months. If the current scenario plays out as expected, traders can expect a bullish move corresponding to the 0.5 Fibonacci level. This level often serves as an important resistance point that XRP must overcome. If successful, investors can expect a rise to $0.81.
In addition, the analyst advised investors to closely monitor technical indicators. One is the potential formation of a doji candle on lower time frames, followed by an engulfing green candle. This pattern often signals a trend reversal and can provide further confirmation of an impending bullish rally.
And while technical indicators suggest the possibility of a bullish run for XRP, it is important to recognize that the ongoing legal battle with the SEC remains a significant factor in determining the token's price.
Now both sides are preparing for the second stage of the legal battle, while the SEC has already announced its intention to file an appeal in this case. In response, Ripple challenged the agency's decision to appeal, arguing that the regulator did not have a strong legal basis for this.
XRP is currently trading at $0.49, posting a small daily gain of 0.6% and a weekly gain of -4.4%.
