• 16 July, 2024
Market News

XRP Struggles to Maintain Value Amid Senator Warren’s Crypto Bill Concerns

The recent release of the United States Consumer Price Index (CPI) for November has unveiled a slight uptick in inflation, recording a 0.3% month-on-month increase. This brings the annual inflation rate to 3.1%. The CPI data, coupled with the anticipation of the forthcoming Federal Open Market Committee (FOMC) meeting, has injected notable volatility into the cryptocurrency market, particularly impacting Bitcoin and various altcoins.

In this climate of uncertainty, the price of XRP, a prominent altcoin, has exhibited remarkable resilience. It has successfully maintained a value above $0.60, despite facing the threat of a decline to a crucial imbalance zone pegged at $0.55. Should XRP’s value descend to this level, it would represent a 7% decrease from its current standing.

The broader context of these market movements is shaped significantly by ongoing legislative developments in the United States. A bill proposed by US Senator Elizabeth Warren, which is currently navigating the final stages of the legislative process, is at the forefront of these developments. This proposed legislation mandates that crypto investors disclose their cryptocurrency holdings’ locations and maximum values.

Senator Warren’s bill, garnering support within the Banking Committee, emphasized increased oversight and regulation of cryptocurrencies. Warren based her argument on the premise that cryptocurrencies can serve as conduits for criminal activities, including terror financing, and thus require a robust regulatory framework to mitigate these risks.

This stance has sparked controversy within the crypto community. John Deaton, a legal advocate for XRP, has been vocally critical of Senator Warren’s position, labeling her “the single biggest threat to crypto in the US.” Deaton’s sentiments reflect a broader apprehension among Ripple supporters and XRP holders, particularly in light of the ongoing SEC v. Ripple lawsuit. The remedies-related discovery phase of this lawsuit is not expected to conclude until February 2024, leaving a settlement in the near term unlikely.

At the time of writing, XRP is trading at $0.602, down 6.5% in the last 24 hours. XRP price suffered a decline from its November 14 high of $0.7495. However, bearish pressure intensified today, leading to a sharp drop in the value of XRP. The altcoin is currently above its 200-day Exponential Moving Average of  $0.55, indicating a bullish trend in the long term. If bearish pressure continues, the XRP price might find support at $0.55. The volatility of XRP has been significantly high in recent weeks, with bearish and bullish movements.

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