Will XRP Break Out of its 12 Week Bearish Trend?

On a weekly chart, XRP has experienced 12 consecutive declines against other cryptocurrencies in the market. This ongoing trend indicates a bearish situation for the asset, triggered by the legal dispute between Ripple and the SEC that has been ongoing for a while.

A crypto trader and supporter of XRP who goes by the pseudonym Mr. Huber recently drew attention to the ongoing bearish trend of XRP in comparison to other cryptocurrencies in the market. Huber shared a TradingView chart showing the weekly performance of XRP against the total cryptocurrency market.

*Image source:https://twitter.com/Leerzeit/status/1627316612910010368*

The TradingView chart shows that XRP has been experiencing a downtrend for some time now, starting from late 2021, which was a period when it performed impressively against other cryptocurrencies. This was despite the ongoing legal battle between Ripple and the SEC, which had been ongoing for nearly a year. Although XRP has been attempting to maintain a symmetrical triangle pattern, the chart indicates that the continuous decline of XRP, which began in the second week of December 2022, may result in a breakout to the downside.

The term “symmetrical triangle” refers to a chart pattern in which an asset’s price fluctuates between two converging trend lines. If the price breaks above the upper trend line, it indicates a bullish move, while if the price breaks below the lower trend line, it indicates a bearish move.

It bears mentioning that, following the 12th consecutive weekly losing session in March 2015, XRP staged a comeback that saw it outperform the rest of the markets by a mile in the second half of 2015.

However, industry insiders are considering other external factors that could affect XRP’s future movements. Despite the current shift in sentiment towards a more optimistic outlook for the cryptocurrency market, some supporters of XRP believe that the outcome of the SEC case will be a significant factor in determining the direction of the asset’s next move.

The supporters of XRP are hopeful about a positive outcome as the legal battle between Ripple and the SEC approaches its end. Attorney John Deaton has stated that the only win the SEC can get in this case is to prove that Ripple sold XRP as an unregistered security between 2013 and 2017. Deaton had previously claimed that even if Ripple did sell XRP as a security at any time, it does not necessarily make the token inherently a security.

XRP is currently in a battle with the US dollar, as it aims to record its second consecutive daily gain. After recording a 3.10% gain in the previous session, XRP has risen by 0.98% today and is currently trading at $0.3899 as of the time of writing.

Olasunkanmi Abudu

Olasunkanmi Abudu is a Web3 content writer with over five years of experience covering blockchain, decentralized finance, and digital assets. He specializes in producing well-researched and accessible content that explains complex technologies and market trends to both general readers and industry professionals.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.