XRP cost rebounds after worst month since June 2021 — major recovery ahead?

Ripple (XRP) opened up in May with an above average cost rebound after falling 28% in April, its worst monthly performance since June 2021. In addition, the XRP/USD pair shows prospects of ongoing its recovery trend within the coming days.

Support confluence raises XRP bullish prospects

XRP’s cost rose by nearly 6.25% within the first couple of times of May, going up to $.63 (data from Binance). The buying sentiment surged around $.58, an amount that acted as strong support in The month of january 2022 and enabled XRP to increase by greater than 50% after that.

XRP/USD daily cost chart featuring support area surrounding $.58-level. Source: TradingView

Interestingly, the $.58-support coincides with XRP’s 200-week exponential moving average (200-week EMA nowhere wave within the chart below).

Additionally, it can serve as the low trendline of the broader climbing down triangular pattern, a bearish indicator targeting $.18 within the coming several weeks.

XRP/USD weekly cost chart featuring 200-week EMA and ‘descending triangle’ setup. Source: TradingView

However with XRP’s cost bouncing from the confluence of support levels, its probability of retesting the triangle’s upper trendline is high. That will possess the token test levels above $.75 — up nearly 30% from today’s cost — his or her next resistance target in Q2/2022.

Purchase the rumor

XRP has become a speculative vehicle for traders searching to take advantage of the ongoing SEC versus. Ripple case.

In December 2020, the U.S. Registration (SEC) filed a suit against Ripple for performing illegal securities sales via XRP. Nevertheless, recent proceedings indicate the situation has been going relatively well for Ripple.

The SEC versus. Ripple situation has dampened buying sentiment within the XRP market, given it’s the only veteran token within the top that’s been not able to conquer its 2017–2018 bull market highs. But analysts think that Ripple’s win would drastically improve XRP’s upside prospects.

Related: Ripple Chief executive officer: SEC situation goes ‘much much better than I hoped’

“XRP investors may benefit hugely if Ripple is the winner within the war,” states Practical Crypto Capital, an analyst at SeekingAlpha, although adding:

“Holders must watch out for this news and become prepared in line with the examples in the past year, we are able to most likely expect increases to quickly peak after which decline.”

The views and opinions expressed listed here are exclusively individuals from the author and don’t always reflect the views of Cointelegraph.com. Every investment and buying and selling move involves risk, you need to conduct your personal research when making the decision.

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