XRP, which was showing promising growth following the favorable verdict in the Ripple case last month, has taken a downturn. Several factors have combined, leaving the cryptocurrency hovering just above the $0.50 threshold, a mighty fall from its $0.83 mark.
From Boom to Bust: The Roller Coaster Ride
Post-July 13’s highs, XRP showcased resilience despite a brief price correction. However, by the end of July, it lost its stronghold over the $0.80 mark, finding some stability around $0.70. Yet, this relief was short-lived. By August 4, after three relentless days of plunging values, XRP breached the $0.70 line.
The $0.60 mark, which acted as XRP’s bulwark against further falls since August 4, could only withstand market pressures for so long. A steep 14% decline recently saw XRP drop below the $0.50 mark, a level unseen in over a month.
Legalities and the Broader Market: Double Whammy
A significant contributor to XRP’s downturn is the renewed apprehensions surrounding the Ripple versus SEC court proceedings. Recent legal decisions, particularly Judge Analisa Torres allowing the SEC to consider filing an interlocutory appeal, further intensified the cryptocurrency’s fall.
Coupled with this, the broader cryptocurrency market didn’t offer any solace. An alarming market crash witnessed an astounding $1 billion worth of assets liquidated within a day. Major players like Bitcoin didn’t escape the carnage, briefly tumbling below the $26k mark.
Turbulent Times Ahead?
Currently, XRP is down by 11% on a daily scale. Recent market data paints a bleak picture, with the Relative Strength Index (RSI) plummeting to unprecedented lows. This downturn resulted in the liquidation of nearly $23 million worth of XRP long positions within a mere hour.
Should current market trends persist, XRP might further gravitate towards the 200-day EMA, potentially hitting the $0.45 mark. This poses the risk of XRP wiping out its entire July gains, possibly plummeting to as low as $0.41, a nerve-wracking 20% dip from where it stands now. Indicators like the RSI, currently lingering at 28, alongside the AO histograms, all forecast a bearish scenario in the near future.
