XRP Price in Jeopardy After Breaking Key Support Level Amid Legal Turmoil
XRP price is facing significant risks after the cryptocurrency dropped below a critical support level. Ongoing legal battles and heightened regulatory scrutiny against Ripple have left investors questioning whether XRP might plummet to zero. The broader market is also feeling the pressure, as Bitcoin’s recent decline below $67,000 has only added to the overall volatility.
As of the latest New York trading session, XRP was trading around $0.5289, representing a 3% decline in the last 24 hours. This drop marks a new weekly low for the asset, further fueling concerns among investors.
The wider crypto market has also shed 2.6% in value, which could be influencing Ripple’s price movements. But the key question remains: Could XRP’s price truly drop to zero?
Why XRP Is in the Danger Zone?
The sentiment surrounding XRP has turned overwhelmingly bearish, as both on-chain data and trader behavior suggest a wave of selling or preparation to sell.
According to data from Santiment, the overall profitability of XRP has dropped significantly between October 14 and October 23. The ratio of daily on-chain transaction volume in profit to loss fell from 2.7 to 1.27. In simpler terms, for every XRP transaction on the ledger, only 1.27 are in profit, a sharp 47% decrease in just one week.
Furthermore, the percentage of XRP coins held in profit slipped from 79% on October 21 to 74% by October 23. This indicates that more investors are experiencing losses and may be selling to avoid further downturns.
Coinglass’ 7-day Liquidation Map further supports this bearish narrative, showing that traders have opened $76 million in short positions versus just $34 million in long positions on platforms like Binance, OKX, and Bybit. This imbalance underscores the prevailing bearish outlook, as many traders expect XRP’s price to drop even further.
Despite this, some analysts remain bullish on XRP, with some predicting a price target as high as $16 in the months ahead.
Could XRP’s Price Drop to Zero?
While XRP is currently in a downward trend, a complete collapse to zero is unlikely. The asset recently broke down from a rising wedge pattern, a bearish indicator. This breakdown has signaled increased weakness and heightened selling pressure.
Technical analysis also confirms this bearish momentum, with sellers driving the price below the rising wedge formation. This wedge was part of a larger bear flag, a continuation pattern that suggests further downside.
XRP may find short-term support around the $0.50 to $0.505 range, and potentially lower near $0.43 to $0.435—marking an 18% drop from its current price. This lower zone could represent the last major support level before the market either stabilizes or attempts a reversal.
The $0.545 to $0.550 range, which was previously a support level, now acts as strong resistance. If XRP attempts to rally, this area could reject the price. However, should market conditions shift, XRP could re-enter its rising channel, invalidating the bearish outlook.
The Relative Strength Index (RSI) currently sits at 39.43, nearing the oversold territory. This suggests that while there’s ongoing downward pressure, a potential bounce could occur if the price reaches oversold levels.
A major factor in XRP price movement is the ongoing SEC v. Ripple lawsuit. Additionally, Ripple’s recent $10 million donation to Vice President Kamala Harris’s campaign has raised eyebrows, potentially linking the company to the U.S. election cycle.
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