XRP has experienced a significant correction, losing almost 30% of its value over the past month, and currently trading below $3. The Directional Movement Index (DMI) indicates a strong bearish trend with the Average Directional Index (ADX) rising above 35, suggesting increased bearish momentum.
A potential reversal could happen if the SEC withdraws its lawsuit against XRP, leading to a possible rally towards key resistance levels. The ADX for XRP currently stands at 36.98, increasing from 15.89 just four days earlier. This sharp rise confirms that market participants believe in the continuation of the current downtrend.
The downward trajectory is further confirmed as the -DI remains above the +DI, indicating persistent bearish pressure. While there has been a slight increase in XRP's active addresses, suggesting renewed interest, sustained growth is necessary for a bullish reversal. Additionally, the EMA lines for XRP show a bearish setup.
XRP's trend is heavily dependent on the outcome of the SEC lawsuit. If withdrawn, XRP could test resistances at $2.36 and $2.52. Breaking these levels could see XRP rise towards $2.71, potentially reversing the current negative outlook.
