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XRP’s value remains volatile due to Ripple’s ongoing battle with the SEC.
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Breaking key resistance at $70 could boost XRP. Support at $0.5210 is currently being tested.
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The long-term price of XRP will be influenced by the legal outcome of Ripple and new custody features.
XRP has had a wild ride ever since Ripple and the US SEC first clashed in December 2020. The ongoing lawsuit that seeks to determine if XRP is a financial instrument has kept the altcoin in a rollercoaster. The outcome of the case could have a significant impact on XRP’s value in the near future.
XRP reached its all-time highest of $3.92 in January 2018, and its lowest of $0.002802 in July 2014. Since its peak, XRP went through several bearish phases. It dropped as low as $0.113268 and also climbed as high as $1.97793.
Currently, the general sentiment is negative towards XRP. The Fear & Greed Index currently stands at 52, indicating a neutral market mood. The technical outlook for XRP suggests a possible bullish breakout if a certain price level is crossed.
Key Resistance Levels & Technical Outlook
XRP is currently trading at $0.5329. Technical analysts have identified the $0.70 level as a key resistance level. If XRP breaches this level, a bullish surge could occur, pushing the price up to the $0.80-$0.90 range. The asset is currently testing the support at $0.5210 and technical indicators indicate a possible short term gain.
After ending its decline in 2024, XRP is now rallying towards the $0.6602, which marks 50% Fibonacci retracement of its slide from its low of July 2023. The RSI currently stands at 41.59 below the midline of fifty, indicating that XRP is not yet in a strong bullish direction. Analysts believe an 8.49% rebound could take XRP up to $0.5778 – the upper point of Fair Value Gap. XRP is facing resistance at the 200 day Exponential Moving average (EMA) of $0.5540.
The SEC Lawsuit & Its Impact on XRP
The price fluctuations of XRP have been closely related to Ripple’s legal battle against the SEC. In August 2023 Judge Analisa Torres decided that selling XRP on secondary markets did not constitute the sale securities. This brought some relief to the price of XRP in the short term. Ripple, however, was ordered to pay $125,000,000 due to its institutional sales of XRP which were deemed to be in contravention of securities laws.
Read Also : Bitnomial sues SEC over XRP futures, disputes security classification
The SEC’s decision in October to appeal certain parts of the ruling has caused further price fluctuations. Ripple filed a cross-appeal to clarify legal points including the definition of ‘investment contracts’ under securities law. Investors are cautious after this back-and-forth, as the outcome of the case could have a significant impact on the regulatory future for XRP and other cryptocurrencies.
Stuart Alderoty has expressed his confidence in the appeals process. He stated that the SEC had lost on many issues with the initial ruling. The ongoing legal uncertainty continues, however, to weigh on XRP’s price.
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