Crypto News, the cryptocurrency market has been witnessing significant fluctuations, and Ripple’s XRP hasn’t been immune to this volatility. In the past 24 hours, XRP’s price has plummeted by a whopping 20%, diving below the $0.50 mark.
XRP Price Dips to Pre-Lawsuit Levels: Is Another Drop Imminent?
This sharp decline means that XRP has erased all the gains it had made post the lawsuit ruling in July 2023. The Securities and Exchange Commission’s (SEC) recent move to file an interlocutory motion against the court’s decision has further dampened the sentiment surrounding XRP.
Judge Torres has given the nod to the SEC’s request, allowing them until August 18 to present their opposing motion. Ripple Labs isn’t left out in the cold, though. They’ve been granted until September 1 to file their counterarguments, with the SEC having the option to respond by September 8.
Analyzing XRP’s Technicals
From a technical standpoint, XRP struggled to breach the $0.65 resistance against the US Dollar, leading to its current downward trajectory. The cryptocurrency has now slipped below the $0.550 support zone.
Currently, XRP is trading under both the $0.55 mark and the 100 simple moving average on a 4-hour chart. This chart also reveals a significant bearish trend line, with resistance hovering around $0.585.
The initial resistance is pegged around the $0.520 mark, aligning closely with the 50% Fibonacci retracement level from the recent drop from $0.6365 to $0.47. The next major resistance is at approximately $0.550, with the primary resistance forming near the $0.585 mark, coinciding with the aforementioned trend line.
However, if XRP cannot break past the $0.550 resistance, it might be poised for another dip. The first support level to watch out for is $0.480, followed by a more significant support at $0.455. A breach below the $0.455 mark, especially if the price closes beneath it, could spell further trouble for XRP, potentially pushing it down to the $0.400 support zone.
What Lies Ahead for XRP?
The future price movement of Ripple will be heavily influenced by the unfolding events in the XRP lawsuit. As the legal proceedings progress, the crypto community will be keenly watching, waiting to see how the scales tip.
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