After initially showing signs of growth, XRP, which was trading at $0.91, is now trading at $0.62 due to bearish pressure. Within the past three days, XRP has recorded three consecutive red candles, indicating a bearish trend.
Today, the asset experienced an additional 2.42% drop, bringing the support level to $0.6172. However, these persistent declines are driven by various reasons contributing to the widespread selling pressure.
XRP Faces Bearish Pressure: Key Factors Contributing to Recent Decline
Many analysts are pointing to a combination of unique unfavorable situations and overall bearish sentiment in the crypto market as the drivers behind these persistent declines.
One significant factor impacting XRP’s decline is the possibility of an appeal from the U.S. Securities and Exchange Commission (SEC) in the Ripple lawsuit. Legal experts have raised concerns about the potential for prolonged legal battles, leading to investor uncertainties.
In a statement, Ripple’s Chief Legal Officer, Stuart Alderoty, stated that “We won’t shy away from likely SEC’s appeal of its federal court ruling. And I believe the Court of Appeals will affirm Judge Analisa Torres’ ruling.” However, despite Alderoty’s reassurance, investor worries continue to influence the token’s performance, ahead of prolonged legal battles.
Another worrisome development is the recent ruling by SDNY District Judge Jed Rakoff in the SEC vs. Terraform Labs case, which challenged Judge Torres’ ruling. This has raised apprehensions that the Court of Appeals may adopt a similar approach.
In addition to legal concerns, the strengthening U.S. dollar index (DXY) since July 27 has also impacted XRP. The significant appreciation of the DXY over the past week has put additional pressure on the token’s value. Likewise, XRP’s 24-hour trade volume has declined, signaling diminishing interest among investors.
With these factors combined, XRP is facing a challenging environment in the crypto market. Investors are closely monitoring developments as the token navigates through uncertainties.
XRP Price Outlook: Analysts Warn of Potential Dips
XRP’s price has taken a hit, dropping to test the lows at $0.62. Analyst WatersAbove has issued a warning, stating that XRP needs to maintain its position above the 34-day EMA on the daily timeframe to avoid a potential collapse to the $0.55 to $0.58 range.
Currently trading at $0.6207, XRP has breached the 34-day EMA ($0.6525). If WatersAbove’s forecast holds true, we could witness further dips to the $0.58 territory. However, XRP still has two major support levels before reaching the $0.58 zone.
XRP’s crucial support lies at $0.6090, which aims to protect against declines below the psychological level of $0.60. A break below $0.60 could be imminent if this support fails. In such a scenario, another support awaits at $0.5962, acting as a buffer against a drop to the $0.58 level.”
Investors are closely monitoring these support levels as XRP navigates through its current price challenges.
