XRP’s journey has been a bumpy one since December 2020, when Ripple first clashed with the US SEC. The ongoing lawsuit, which seeks to determine whether XRP is a security, has sent the altcoin into a tailspin. The outcome of the lawsuit could have a significant impact on XRP’s price in the near future.
XRP reached an all-time high of $3.92 on January 4, 2018 and an all-time low of $0.002802 on July 7, 2014. Since its peak, XRP has gone through several periods of decline, falling as low as $0.113268 but also rising to a high of $1.97793.
Currently, the overall sentiment for XRP is bearish. The Fear & Greed Index is currently at 52, thus indicating a neutral market sentiment. However, the technical outlook for XRP suggests a potential bullish breakout if certain price levels are surpassed.
Key Resistance Levels and Technical Outlook
XRP is currently trading around $0.5329, with technical analysts identifying the $0.70 mark as a key resistance level. If XRP breaks above this level, it could trigger a bullish rally, potentially pushing the price into the $0.80 to $0.90 range. The asset is currently testing support at $0.5210, and technical indicators suggest a potential upside move in the short term.
After ending the decline in July 2024, XRP has recovered to $0.6602, marking the 50% Fibonacci retracement level of the decline from the July 2023 low. The RSI is currently at 41.59, below the midline of 50, indicating that XRP has yet to enter a strong bullish trend. Analysts believe that an 8.49% recovery 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.
SEC Lawsuit and Its Impact on XRP
XRP’s price movements are closely linked to Ripple’s legal battle with the SEC. In August 2023, Judge Analisa Torres ruled that the sale of XRP on the secondary market did not constitute a sale of securities. This brought some short-term relief to XRP prices. However, Ripple was ordered to pay $125 million for the institutional sale of XRP, which was deemed to be a violation of securities laws.
The SEC’s decision to partially appeal the ruling in October has thrown uncertainty back into the market, causing further price volatility. Ripple has responded with a cross-appeal, seeking to clarify key legal points, including the definition of an “investment contract” under securities law. The back-and-forth has left investors cautious, as the outcome of the case could have significant implications for the regulatory future of XRP and other cryptocurrencies.
Ripple’s chief legal officer Stuart Alderoty has expressed confidence in the appeals process, stating that the SEC lost on many issues in the original ruling. However, the ongoing legal uncertainty continues to put pressure on XRP prices.
