Today, the XRP price dropped due to the ongoing legal dispute between Ripple and the SEC, along with Bitcoin's volatility around $105,000. This analysis delves into technical factors, on-chain data, and outlook for investors. Stay tuned to key levels to predict upcoming market movements.
The cryptocurrency market remains volatile, and Ripple ‘s XRP is no exception. Today, the price of XRP has recorded a significant drop, trading at $2.42 with a daily loss of 3.50%.
This correction comes amidst persistent legal uncertainties and broader crypto market dynamics.
Indeed, the main concern for XRP remains the ongoing dispute between Ripple and the United States Securities and Exchange Commission (SEC). While Ripple has secured partial victories, the uncertainty surrounding a potential fine or regulatory restrictions continues to dampen investor enthusiasm.
Recent speculations about an SEC appeal have reignited fears, triggering selling pressure on XRP. This legal factor remains a key driver of short-term price movements.
Furthermore, Bitcoin’s recent surge towards the psychological level of $105,000 also plays a crucial role. Historically, altcoins like XRP experience corrections when Bitcoin hits major resistance levels.
Glassnode data shows an increase in the liquidation of long positions on exchanges, signaling widespread profit-taking. If Bitcoin were to be rejected at this level, increased volatility could lead to further pressure on XRP and other altcoins.
Technically, XRP has been moving within an ascending channel for several weeks. However, the loss of support at $2.45 has paved the way for a decline towards $2.35. A break below this level could push the price towards the lower trendline at $2.20, or even $2.00 in case of significant liquidation.
Conversely, a return above $2.51, supported by high volume, could signal a bullish recovery targeting $2.60 and then $2.80. The RSI (Relative Strength Index) at 42 indicates that XRP is not yet in oversold territory, leaving room for further correction.
XRP remains in a critical stage of its price. It must withstand volatility, or risk dropping to $1.77 or even $1.35 in a scenario of significant Bitcoin retreat.
The current decline in XRP reflects a combination of legal uncertainties and macroeconomic volatility in the crypto sector. Investors must closely monitor the evolution of the Ripple-SEC dispute, Bitcoin movements, and key technical levels.
On-chain data suggests continued interest in XRP, but caution is advised. By following these indicators, traders can identify buying opportunities or anticipate a more pronounced correction.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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