- Ripple’s XRP experienced a sharp decline, dropping to its lowest level in fifteen months amid a widespread market correction.
- Despite positive legal developments in the SEC lawsuit, the cryptocurrency market’s volatility has led to significant losses for XRP.
In a significant market downturn, Ripple (XRP) has experienced a sharp decline alongside major cryptocurrencies, signaling a tumultuous period for the crypto market. The recent dip in Bitcoin’s price under the $55,000 support level has triggered a market-wide correction affecting top altcoins, including XRP.
XRP Sinks to New Lows
Ripple, which had been showing positive momentum over the past fifteen months, erased its gains and plunged to $0.40 early on Friday. This decline extended throughout the day, with XRP dropping another 7% to settle at $0.38. This steep drop marks Ripple’s lowest level in fifteen months, as the altcoin struggles to find support amidst the broader market correction.
Several factors have contributed to the increased pressure on Bitcoin and altcoins like XRP. Notably, the German government’s Bitcoin transfers and the ongoing Mt.Gox payback to creditors have created uncertainty among traders. These events have compounded the existing volatility, leading to significant losses across the crypto market.
Legal Battles and Market Reactions
Despite the bearish market conditions, recent developments in the ongoing Securities and Exchange Commission (SEC) lawsuit against Ripple have been somewhat favorable for the payment remittance firm. Judge Amy Berman Jackson has treated Judge Torres’ 2023 ruling as a precedent in the SEC’s case against Binance, which supports the notion that XRP is not a security in secondary market sales.
However, the positive legal news hasn’t been enough to buoy XRP’s price. Traders have been shedding their holdings at a loss since April 2024, as indicated by Santiment data. The continued sell-off has driven Ripple to its current low levels, exacerbating the overall market decline.
Technical Analysis: Searching for Support
From a technical perspective, Ripple has been in a downward trend since March 11, with its price dipping to the lowest point in over a year. If the bearish momentum continues, XRP could potentially find support at the March 21, 2023, low of $0.37. Conversely, a daily candlestick close above $0.4611 could invalidate the current bearish outlook and push XRP higher, targeting the next resistance level at $0.50.
As the market navigates through this turbulent phase, investors and traders are closely monitoring the situation. The interplay between legal developments, market sentiment, and technical factors will play a crucial role in determining XRP’s future trajectory. For now, Ripple remains caught in the throes of a crypto market bloodbath, with its fortunes hanging in the balance.
