Despite the ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, the digital token XRP has been showcasing bullishness over the past couple of days.
However, the current surging trend, considering the situation of the price, is nothing compared to where XRP was standing before the SEC came suddenly with its regulatory hammer.
XRP investors are still struggling around the $0.30 price level while the majority of the cryptocurrencies in the market are gaining meteorically with Bitcoin (BTC) as its price passes $40,000.
At the current price, Bitcoin (BTC) is over 100% higher than the previous all-time high of January 2018, while XRP’s price is still down more than 90% from its all-time high recorded around the same time as BTC.
Obviously, the lawsuit filed by SEC against Ripple has greatly impacted the price of the digital token XRP negatively. Also, the fact that some exchanges decided to delist or halt their usual activity with XRP is a clear negative signal that is expected to leave its price in bad shape.
However, the chart might give some potential bullish outlook for the short term period, if the price of XRP breaks several key resistance levels.
XRP Must Break Resistance at $0.32-0.345 for More Upside Trends
The XRP chart below shows a very odd price pattern as the price of the digital currency flipped the $0.21 price level for support outstandingly in 2020.
This support/resistance flip caused a breakout above the significant resistance zone at $0.32-0.35. This breakout led to a run toward the $0.80 region, one of the most significant surges of XRP in recent years.
XRP/USD 3-day chart. Source: TradingView
Howbeit, as aforementioned, the trend suddenly changed after SEC unveiled a lawsuit against Ripple, the cross-border payment firm that oversees the distribution of XRP.
Now, the structure itself is damaged and looks quite odd to chart on. Regardless of that bizarre move, crucial and beneficial levels can still be determined from here.
The critical level to hold for the bulls is the range low at $0.21-0.23, which once again provided support in recent weeks.
Yes, the candles dipped below $0.21-0.23. Nevertheless, the candle closes were above, indicating that support was found for XRP.
At the time of writing, XRP is trading at $0.3276, with a 1.31% price upsurge in the last 24 hours. Based on the higher time frames, critical levels are defined at $0.21-0.23 and $0.32-0.35 as support and resistance zones.