The culmination of a five-year legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) has brought a much-awaited moment of regulatory clarity to the crypto market. Following the joint dismissal of their appeals, the market’s initial celebratory rally for XRP has given way to a period of profit-taking. This has led to a noticeable decline in XRP’s price, highlighting the classic market dynamic where good news is often followed by a selloff as early investors cash in on their gains. This article will provide a detailed technical analysis of the recent price action, exploring the key support and resistance levels that are now in play.
The Immediate Aftermath: A High-Volume Selloff
In the 24-hour period ending on August 9, XRP experienced a significant drop, falling approximately 5% from $3.34 to $3.20. The most intense selling pressure occurred between 14:00 and 15:00 UTC, a single hour where the price collapsed from $3.36 to $3.20 on a massive volume of 209.67 million tokens. This high-volume move is a clear indication of a major shift in market sentiment, as short-term traders and early investors took profits. This volatility, with a 5.24% intraday range, demonstrates a market in flux, as buyers and sellers battle for control in the wake of the settlement news.
Key Support and Resistance Levels
Following the initial selloff, a crucial defense by buyers at the $3.20 zone prevented a further price decline. This area is now confirmed as a key support level, validated by the massive volume that accompanied the rebound. The price then recovered to $3.33 by 19:00, where it encountered new resistance between $3.31 and $3.33. This resistance zone has formed as profit-taking continues to cap any significant upward momentum. For traders, the price action is currently defined by a clear range-bound trade between the $3.20 support and the $3.33 resistance.
Technical Indicators and Chart Formations
A closer look at the technical indicators reveals some interesting formations. A “bull flag” structure appears to be developing above the $3.28 level, which could suggest a potential continuation of the upside momentum if the $3.33 resistance is successfully breached. A notable volume spike of 1.86 million tokens at 01:52 UTC indicates targeted accumulation attempts, where large buyers are likely stepping in to acquire XRP at what they perceive to be a discounted price. This suggests that while profit-taking is in full swing, there are still major players who see long-term value in the asset following the legal clarity.
What Traders Are Watching Next
With the settlement now a fact, the market’s focus has shifted to the next phase of XRP’s journey. Traders are closely monitoring several key factors. The primary concern is whether the newly established $3.20 support level will hold on a retest. A break below this level could signal further bearish momentum, while a successful defense would reinforce its importance. The second point of interest is a confirmed breakout above the $3.33 resistance, which would signal the end of the current profit-taking phase and a potential resumption of the rally. Furthermore, traders are watching for follow-through buying related to the post-settlement regulatory clarity and potential institutional flows from new ETF filings in other countries, which could spill over into the U.S. markets.
Read More: XRP’s Legal Victory: Ripple and SEC End Court Battle Over Appeals
