2021 was not the best year for XRP. The SEC’s lawsuit against Ripple, which began in December 2020, has put pressure on XRP throughout 2021. As a result, XRP could not stand the competition and moved to 8th place in the TOP-10 cryptocurrencies.
Throughout the year, the XRP price followed the trends of the cryptocurrency market and showed growth following Bitcoin. However, the litigation between the SEC and Ripple prevented the XRP price from reaching new highs, as did other altcoins and Bitcoin. XRP price peaked at $1,4162 in September. However, Q4 turned out to be unfavorable for XRP as well as for the entire cryptocurrency market as a whole.
The new year XRP price started around $0,8326. On the 4-hour chart, the XRP/USD pair has been in a descending price channel since the end of December. This channel supported the price around $0,80 and did not let the price go down. However, it also limited the XRP/USD pair at $0,86 and prevented the bulls from rallying. Since December 30, the XRP/USD pair has been showing sideways movement. As seen on the chart, any underlying pressure to push XRP higher will be offset by the excess pressure.
In the current situation, the XRP/USD pair is trying to overcome the immediate resistance around 0,8365. If today the pair overcomes this resistance and holds higher, it will leave the downtrend channel. Further, the pair will face resistance at 0,8440. A move above 0,8586 will mark the start of a new bullish rally in XRP/USD. The next logical step will be to move to the resistance level of $0.90.
On the other hand, if the XRP/USD pair fails to rise above 0,8365, it could start a new downward movement within the downtrend channel. In this case, the XRP/USD pair will drop to the nearest support level of 0,8255. A move below this level will send XRP/USD to the area of 0,8189.