XRP has recently experienced a significant drop below $0.5500, a development attributable to Rippleās ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC appeal against the previous court ruling has increased uncertainty surrounding XRP.
The token has seen a 9% decline in its price since Wednesday. At press time, XRP was priced at $0.524003, with a 24-hour trading volume of $1.82 billion.
The cryptocurrency witnessed a minor recovery, gaining 0.88% over the past 24 hours. It remains the 7th largest cryptocurrency by market capitalization, valued at approximately $29.64 billion.
XRP Testing Key Support Level at $0.5080
At press time, XRP was near a critical horizontal support level at $0.5080. This price level has acted as support multiple times in the past. A hold at this support could result in a potential price rebound.
The price could face minor resistance at $0.6000. If it breaks, a further upside moveĀ to $0.7000 is possible, represent a 37.33% increase.
Source: Tradingview
However, if the price fails to maintain support at $0.5080, XRP could face further downside risk with the next major support level below, at $0.4000. A break below this threshold could signal continued bearish momentum and lead to deeper price declines. Traders will need to monitor price action and trading volume closely to determine the likely direction of the token in the near term.
Whale Activity and Legal Developments Fuel Market Movements
In recent developments concerning the legal dispute between Ripple and the U.S. SEC, large XRP holders (whales) have shifted 153 million XRP coins. On-chain data from Whale Alert revealed that these movements occurred as the SEC filed an appeal against the recent judgment in the Ripple lawsuit.
This substantial whale activity has sparked speculations within the market, as investors closely monitor the potential impact on XRP’s price. Three significant transactions were recorded.
Two of theĀ whale addresses transferred XRP to crypto exchanges Bitso and Bitstamp, raising concerns about possible large-scale selling. The third transaction showed a shift of over 104 million XRP to an unknown wallet, which further fueled speculation about the intent behind these movements.
Technical Indicators Point to Mixed Signals
The Volume Weighted Average Price (VWAP) currently sits at $0.5231, slightly below the current price. This suggests a neutral stance, with no strong buying or selling pressure dominating the market. XRP is trading close to its volume average, indicating a balanced market sentiment.
Source: Tradingview
The Chaikin Money Flow (CMF) indicator is at -0.14, suggesting a capital outflow and confirming the selling pressure observed in the market. A CMF reading below zero typically indicates that sellers are in control, which may lead to further prices.
Moreover, MACD also shows bearish momentum, with the MACD line positioned below the signal line and both lines in negative territory. For a bullish sentiment, traders will look for a crossover of the MACD line above the signal line, which could indicate a reversal and signal a recovery for XRP.
