Key Insights
- The ongoing legal battles Ripple is facing, has complicated its price outlook.
- XRP crashed along with the rest of the crypto market over the last day, losing 10% of its value.
- The cryptocurrency is currently testing its 200-period EMA on the 4-hour chart around $2.7.
- If the bearish action continues, XRP could test the $2.5 zone before rebounding.
- A rebound is expected to take XRP back up to the $3.5 price level.
The crypto market crashed further down over the last 24 hours, with Bitcoin dipping below the $100,000 mark.
This downturn has been especially harsh on XRP, considering the escalation of its legal battle with the SEC.
The recent court decisions and SEC moves have created a complex landscape for the cryptocurrency, and here is a breakdown of its price action and what to expect for the cryptocurrency.
SEC’s Crypto Classification Arguments Under Scrutiny
The SEC’s efforts to classify crypto as securities continues to face resistance In recent times.
Last week, Judge Orrick, who is overseeing the SEC versus Kraken case pointed out some major issues with the SEC’s argument.
He clarified that while crypto assets available for trading on platforms like Kraken may involve investment contracts, it doesn’t necessarily mean that the assets themselves are securities.
This move aligns with Judge Torres’ earlier ruling in the Ripple versus SEC case.
Meanwhile, Gary Gensler stepped down as SEC Chair on 20 January, but not before appointing experienced attorneys to play key roles in the agency’s ongoing cases.
This strengthened legal team has continued the agency’s aggressive stance against crypto.
It has also complicated efforts by acting chair Mark Uyeda and commissioner Hester Pierce.
XRP Price Analysis
XRP has faced strong selling pressure over the last day, with an ongoing 10% decline over the last 24 hours according to data from CoinMarketCap.
The number of XRp transactions also slowed down somewhat on Sunday with a tank in trading volumes.
However, according to current data, this metric has bounced back by a staggering 241%, with the XRP Ledger processing $10.64 billion in transactions over the last 24 hours.
According to the charts, XRP had been trading within a symmetric triangle pattern since December 2024.
Its breakout from this pattern led it upwards past the $3 zone towards $3.4 for the first time in seven years.
However, the ongoing decline has brought the cryptocurrency down below $3 once again, with the cryptocurrency now testing its 200-period EMA around $2.7.
Indicators Suggest Bearish Momentum
The MADC on the daily chart has shown a consistent rise in red histograms, indicating that the bears are taking control.
Similarly, the RSI on the daily timeframe shows an increasing approach towards the bearish zone, with a current reading of 48.
If the bearish action continues, XRP could continue further down towards the $2.5 price level before rebounding.
XRP might experience a strong push towards $3.5 in the future, depending on where the bulls choose to step in, and whether any positive developments result from Ripple’s legal battles.
Bitcoin is also experiencing an inability to reclaim the $100,000 zone, without mentioning nearly $700 million in liquidations across the market in just 24 hours.
The ongoing turbulence shows a market-wide bearishness that might need to turn positive, before XRP makes a comeback.
