Recent losses totaling $25.67 million have sparked worries among traders as XRP’s value dropped to $0.56, hitting a two-week low. The recent downturn in XRP’s price is attributed to escalating uncertainty surrounding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
Ripple faces a crucial deadline on April 22, when it must submit its response to the SEC’s remedies-related brief. Traders anxiously await developments in this lawsuit, which could significantly impact XRP’s future trajectory in the market. The prevailing apprehension has led to a flurry of sell-offs, as investors seek to minimize their losses amidst the prevailing uncertainty.
Stuart Alderoty, Ripple’s Chief Legal Officer, recently addressed the community’s concerns regarding XRP’s security status and the SEC’s stance. His X post highlighted the complexities surrounding the SEC’s definition of a crypto ecosystem and its implications for XRP’s regulatory classification.
The technical analysis reveals a bearish trend for XRP, with the altcoin experiencing three consecutive lower highs and lower lows in April. Traders anticipate a potential liquidity sweep at the $0.5673 support level, followed by a further decline towards the February 22 low of $0.5386.
However, there remains optimism that XRP could rebound if it gathers liquidity at the support level, potentially filling the Fair Value Gaps (FVG) at $0.6030 and $0.6103 on the 4-hour timeframe, and between $0.6185 and $0.6204 on the daily timeframe.
Despite the current downturn, XRP has managed to sustain itself above key support levels for nearly a month. However, its ability to recover hinges on the outcome of Ripple’s legal battle with the SEC. The current XRP price stands at $0.586684, with a 24-hour trading volume of $1,763,038,675, indicating ongoing volatility in the market.
XRP’s price decline underscores the significance of the impending legal developments and their impact on investor sentiment. As Ripple prepares to present its response to the SEC, market participants remain on edge, closely monitoring the proceedings for clues about XRP’s future regulatory standing.
