SEC cancels supposed Ripple settlement meeting, XRP plunges. Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)—The price of XRP plunged on July 18 after the US Securities and Exchange Commission (SEC) canceled a supposedly “secret” meeting about its lawsuit with Ripple.
The closed-door meeting had fueled speculation about a potential settlement in the SEC’s ongoing lawsuit against Ripple. This expectation, in turn, had driven XRP prices up significantly.
XRP USD price action over the past 24 hours. Source: CoinStats
Following news of the SEC canceling its meeting, the hype of a possible settlement died, taking XRP’s bullish momentum with it. As a result, XRP price dropped nearly 10% to reach a daily low near $0.56 before recovering slightly.
Unnecessary Hype Hurts XRP Prices
Theories about the cancellation’s reason emerged quickly. Some speculate that the SEC is focusing on the approval process for several spot Ethereum ETFs, which have already received preliminary nods. Others worry that the cancellation signals a delay or complication in the Ripple case.
The SEC Ripple lawsuit, which alleges that XRP is an unregistered security, has overshadowed the token since its inception. Investors had hoped for clarity from a potential settlement, which now seems further away.
SEC canceled its “ top secret, super important” meeting.
The meeting’s abrupt cancellation has heightened uncertainty in the market, affecting investor sentiment and contributing to the significant drop in XRP’s price. As the cryptosphere processes this development, the future of Ripple and XRP remains uncertain.
However, the market reaction can be described as funny at best. For all the hype surrounding the meeting, there were many who pointed out that such meetings are normal for the Securities and Exchange Commission. Hence, traders should not get their hopes up.
Yet, in the crypto sector, hope and speculation rule, which is why XRP price is down by nearly 10% on July 18. Furthermore, the drop in prices threatens a potential bullish breakout from a falling wedge pattern that the XRP USD pair was painting.
Bears Pushing XRP Price Back Inside Channel Pattern
XRP’s price action reveals a struggle between bullish optimism and bearish realities. The bears are pushing XRP prices back below the upper trendline of the descending channel, likely invalidating the token’s breakout attempt. This move signals potential further downside for XRP.
XRP initially broke above the descending channel’s upper trendline, sparking hopes of a sustained rally. However, the sudden cancellation of the SEC meeting laid waste to the hopium-induced rally, providing bears with an opportunity to regain control.
XRPUSD daily price chart with RSI. Source: Tradingview
The Relative Strength Index (RSI) shows a decline from overbought territory, becoming neutral with a score of 62.75 on the daily charts, supporting the bearish sentiment. Volume spikes accompanying these price movements indicate significant selling pressure.
As XRP tests the support around the $0.55 mark, traders should watch closely for any signs of consolidation or further declines. The failure to maintain levels above the upper trendline underscores the bearish dominance, with the next support level near $0.522.
Investors and traders must remain vigilant, considering the heightened volatility and the ongoing uncertainty surrounding the SEC lawsuit.
Conversely, an uptrend would likely see the XRP USD pair face resistance near $0.611 and $0.655.
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