XRP Tumbles 10% Amid Major Ripple and SEC Legal Battle News

• Recent news regarding Ripple and the SEC has caused XRP’s value to drop.
• A recent price drop has put XRP’s key support level at risk.
• A potential rebound for XRP could lead to further gains.

In recent weeks, XRP has mirrored the volatility of a rollercoaster ride. A strong rally propelled the coin upwards, only to be met by a recent pullback that has brought its price face-to-face with a critical support level. This critical juncture raises a pivotal question: will XRP find support and resume its ascent, or will it succumb to the selling pressure and embark on a steeper decline?

The drop has coincided with the cancellation of a private meeting between the SEC and Ripple which was supposed to happen today. This cancellation has cast a shadow over XRP’s near-term outlook, and is most likely the main cause for the drop.

XRP Revisits Key Support

At the time of writing, XRP is trading around $0.58, down nearly 10% from its recent highs. This correction comes after a surge that saw XRP break above the $0.5724 level, which previously acted as resistance. Now, the coin is retracing its steps and revisiting this key support zone.

Technical indicators offer some insight into what might unfold next. On the 4-hour chart, XRP is still above its 100-day average but is currently trending downwards towards the $0.5724 support. This suggests a potential short-term pullback before a possible resumption of the uptrend.

XRPUSD 4-Hour Chart with Composite Trend Oscillator Source: TradingView

The Composite Trend Oscillator on the 4-hour chart reinforces this notion. The indicator’s signal line has dipped below its moving average, reflecting the recent price decline. However, both lines are attempting to move out of overbought territory, indicating a potential easing of selling pressure.

The 1-day Composite Trend Oscillator supports this view, with its signal line recently crossing above its moving average and exiting the overbought zone. This hints at a long-term bullish outlook despite the current price dip.

XRP Price Faces Crucial Test

The upcoming test at $0.5724 is crucial for XRP’s future trajectory. If the price finds support at this level and rebounds, it could signal a continuation of the uptrend. A successful break above the next resistance point at $0.6697 could further fuel the rally, potentially pushing XRP towards $0.7342 and beyond.

However, a break below the $0.5724 support would be a bearish sign. In that scenario, XRP could experience a steeper decline towards the $0.4663 support level, with the possibility of further drops if that level fails to hold.

Traders and investors are closely watching this price action as XRP approaches the critical support zone. The outcome of this test will likely determine the coin’s direction in the coming days and weeks.

On the Flipside

• The ongoing lawsuit between Ripple and the SEC is a major cloud hanging over XRP. A negative outcome in the case could dampen investor sentiment and hurt the price.
• Even if the $0.5724 support holds, XRP may still face resistance at higher price points due to psychological factors.

Why This Matters

The sudden cancellation of the SEC meeting with Ripple has thrown XRP’s price into question. A break below the current support level could trigger a steeper decline, while a successful rebound could signal a continuation of the recent rally. This could impact both short-term trading decisions and long-term investor confidence in XRP.

To learn more about the recent cancellation of a closed-door SEC meeting with Ripple and its impact on XRP price, read here:
SEC Calls Off Ripple Private Meeting: What Happened?

Curious about the recent surge in XRP price? This article explores the possible connection to the ongoing lawsuit between Ripple Labs and the SEC. Check it out:
XRP Soars 61%: Is a Ripple Lawsuit Verdict Getting Priced In?