Despite securing a win in its case against the SEC, XRP's price has experienced another decline over the weekend. However, there are hopes for a price reversal soon.
Current XRP Price Movement
XRP hovered around $0.473 during European business hours on Monday, reflecting a 3% drop in the past 24 hours, according to CoinGecko data. Amid this price drop, Ripple CEO Brad Garlinghouse took to X (formerly Twitter) last Friday to address misleading and factually inaccurate headlines about a California judge's decision in a class action lawsuit involving XRP.
Bearish Control May End Soon
Since April 12, XRP's price has trended below the 50-day and 200-day simple moving averages (SMA). On April 20, a death cross appeared on the XRP price chart, signaling a continued downtrend. Additionally, XRP's price formed a symmetrical triangle structure, giving a 50/50 chance of breaking out in either direction.
On June 7, XRP's price broke downward, hitting lows of $0.454. The relative strength index (RSI 14) also fell below its moving average (MA). However, at 37, the RSI indicates limited room for further decline. Despite these negative developments, XRP continues to hold a critical support level around $0.475. The price breakout remains part of a wider consolidation zone, with a strong upper boundary around $0.57 and a lower boundary around $0.46.
Two potential scenarios could unfold: a further drop to a lower support level around $0.429, or a bounce from the current support back to the top of the range around $0.57. In both scenarios, a bounce is expected. Key resistance levels to watch are $0.49 and $0.56.
Additionally, data from CoinGecko shows the 24-hour trading volume of XRP surged by 58%, hinting at increasing interest among investors.
Factors Behind the XRP Price Downturn
Despite the win with Judge Hamilton, XRP's price continues to decline. Ripple CEO Brad Garlinghouse suggests that misleading statements from crypto news platforms might be a contributing factor. On Twitter, Garlinghouse clarified that the single state law claim proceeding to trial involves plaintiffs he described as “trolls,” attempting to exploit the U.S. legal system and distort statements for substantial class action settlements. Notably, the plaintiff in question owned only 200 XRP.
Conversely, crypto whales have been accumulating XRP amid the price drop. Whale Alert, a market watcher, detected a significant transfer of XRP from Binance to an unknown wallet last Friday.
Bottom Line
Last week’s ruling by Judge Hamilton was a significant win for Ripple in their lawsuit against the SEC. Nevertheless, rogue market elements, including anonymous whales, continue to undermine XRP's price. However, a price reversal could be on the horizon as market conditions evolve and investor interest remains high.
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