21 April, 2024

Ripple’s XRP Hits Monthly Low Amid SEC Clash and Market Downturn: Report

04 Apr, 2024

04 Apr, 2024

  • Amid a broader crypto market downturn, XRP hit a monthly low, further pressured by intensifying legal battles with the SEC over cryptocurrency regulations.
  • Ripple’s legal officer counterattacks SEC criticism on compliance, amidst ongoing disputes highlighting the industry’s struggle with regulatory clarity.
  • As XRP navigates a dip into oversold conditions, its potential recovery faces uncertainty amidst regulatory tensions and market volatility.

In a week shadowed by a broader downturn in the cryptocurrency market, Ripple’s XRP experienced a significant decrease, descending to monthly lows of $0.5623 on Thursday. This downward movement is amid escalating legal tensions between Ripple and the U.S. Securities and Exchange Commission (SEC), with debates intensifying over classifying crypto assets in the financial realm. As of press time, XRP is trading at $0.5766, experiencing a decrease of 2.60% in its price over the last 24 hours and a 7.65% drop over the previous week.

Source: TradingView

At the heart of the controversy, Stuart Alderoty, Ripple’s Chief Legal Officer, openly criticized SEC Director Gurbir Grewal’s remarks on crypto firms’ compliance. Grewal’s observations, which highlighted “significant non-compliance” within the industry, were shared at a Practicing Law Institute event, sparking a fiery exchange between the regulator and Ripple’s representative. Alderoty rebuked Grewal for overlooking what he perceives as the SEC’s overreach and lack of clear regulatory guidance.

The legal conflict between Ripple and the U.S. Securities and Exchange Commission (SEC), which commenced in 2020, continues to unfold. A significant moment in this case is anticipated on April 22, when Ripple is expected to counter the SEC’s latest suggestion to levy a fine nearing $2 billion. This courtroom skirmish, along with the market’s downturn, has negatively impacted the value of XRP, marking its fourth consecutive day of depreciation.

From a technical standpoint, the Relative Strength Index (RSI) of XRP dipped into the oversold territory early Thursday, signaling a potential buying opportunity for investors eyeing a rebound. Analysts speculate that XRP’s price could recover to a Fair Value Gap (FVG) ranging between $0.6030 and $0.6103, according to the 4-hour chart analysis. However, this potential resurgence could be followed by another correction, or a liquidity sweep could push prices below the $0.5678 support level, which remained robust throughout March.

Source: TradingView

Under a less optimistic outcome, if XRP’s value falls beneath the $0.5623 mark, there’s a possibility it could drop further to $0.5386, a pivotal support point that has been consistently observed over the past month. This challenging time for Ripple highlights the wider difficulties and unpredictability that the cryptocurrency industry faces, particularly in terms of adhering to regulatory standards and navigating market fluctuations.


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