- XRP’s price remains volatile, influenced by Ripple’s ongoing legal battle with the SEC.
- Breaking key resistance at $0.70 could boost XRP, while $0.5210 support is currently tested.
- Ripple’s legal outcome and new custody features will shape XRP’s long-term price movement.
XRP’s journey has been a wild ride since December 2020, when Ripple first locked horns with the US SEC. The ongoing lawsuit, which seeks to determine whether XRP is a security, has kept the altcoin on a rollercoaster. The case’s outcome could significantly impact XRP’s price in the near future.
XRP hit its all-time high of $3.92 on January 4, 2018, and its all-time low of $0.002802 on July 7, 2014. Since reaching its peak, XRP has gone through several bearish phases, dropping as low as $0.113268 while also climbing as high as $1.97793.
At the moment the general sentiment towards XRP is bearish. The Fear Greed Index is currently at 52, thus, pointing at a neutral market sentiment. However, the technical outlook for XRP hints at a possible bullish breakout if certain price levels are crossed.
Key Resistance Levels and Technical Outlook
XRP is presently trading around $0.5329, with technical analysts identifying the $0.70 mark as a crucial resistance level. If XRP breaks above this level, it could trigger a bullish surge, potentially pushing the price towards the $0.80 to $0.90 range. The asset is currently testing support at $0.5210, and technical indicators suggest a possible short-term gain.
Source: Tradingview After ending its decline in July, 2024, XRP has been rallying toward the $0.6602, which marks the 50% Fibonacci retracement level of the slide from its July 2023 low. The RSI is currently at 41.59, below the midline of 50, indicating that XRP hasn’t yet entered a strong bullish trend. Analysts believe that an 8.49% bounce could take XRP to $0.5778, the upper point of the Fair Value Gap (FVG). However, XRP faces resistance at the 200-day Exponential Moving Average (EMA) at $0.5540.
The SEC Lawsuit and Its Impact on XRP
XRP’s price swings have been closely linked to Ripple’s legal battle with the SEC. In August 2023, Judge Analisa Torres ruled that selling XRP in secondary markets does not constitute the sale of securities. This provided some short-term relief for XRP’s price. However, Ripple was ordered to pay $125 million due to its institutional sale of XRP, which was deemed to be in violation of securities laws.
Read also : Bitnomial Sues SEC Over XRP Futures, Disputes Security Classification
The SEC’s decision to appeal parts of the ruling in October has reintroduced uncertainty into the market, causing further price fluctuations. Ripple responded with a cross-appeal , aiming to clarify key legal points, including the definition of “investment contracts” under securities law. This back-and-forth has made investors cautious, as the case’s outcome could significantly impact the regulatory future of XRP and other cryptocurrencies.
Ripple’s Chief Legal Officer, Stuart Alderoty, has expressed confidence in the appeal process, stating that the SEC lost on many issues in the initial ruling. However, the ongoing legal uncertainty continues to weigh on XRP’s price.
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