XRP’s price decline persists amid speculation of dropping below the critical $0.45 support level. Analysts attribute this ongoing trend to uncertainties surrounding the Ripple vs. SEC legal battle and recent comments by SEC Chair Gary Gensler.
After a brief 1.19% recovery on Tuesday, June 26, where XRP saw a minor 0.44% increase to close at $0.4761, the cryptocurrency remains entrenched in a bearish trajectory. It continues to trade below both the 50-day and 200-day EMAs. Analysts are contemplating potential scenarios from this juncture: a breakout above these trendlines might signal a move towards the 50-day EMA, followed by a potential rally to the 200-day EMA.
Conversely, breaching the $0.47 mark could indicate a possible drop below the key $0.45 support level. The current market sentiment suggests XRP might enter oversold territory, echoed by the 14-day Relative Strength Index (RSI) reading of 39.12. Recent market data reveals a decline of 0.36% in the past 24 hours, 4% over the last seven days, and a significant 9% drop in the past month, with XRP now trading at $0.4733.
Despite these challenges, optimism persists among investors as Ripple achieves another milestone with the Dubai Financial Authority’s VARA approving XRP for global money transfers. This development could potentially boost XRP adoption. However, uncertainties stemming from the SEC v Ripple case and potential appeals against rulings on XRP’s Programmatic Sales could mitigate these gains.
The SEC’s intensifying legal battle with Ripple has drawn attention, particularly its push for a $2 billion fine and restrictions on XRP sales to institutional investors. Market participants eagerly await the outcome, which could influence their trading decisions significantly.
Amid regulatory scrutiny of crypto-related entities, SEC Chair Gary Gensler recently criticized exchanges for inadequate disclosure practices during a Bloomberg Invest event. He highlighted concerns over token offerings lacking proper investor information, suggesting deficiencies in compliance.
In response, Ripple CEO Brad Garlinghouse rebuffed Gensler’s remarks, accusing him of failing to understand the industry’s dynamics and overlooking major players like FTX. Garlinghouse also suggested that Gensler’s actions could have political ramifications, potentially impacting the upcoming presidential election.
In conclusion, while XRP faces downward pressure due to regulatory uncertainties, developments like global approval for money transfers offer a glimmer of hope, albeit amid ongoing legal challenges. The outcome of the SEC case remains pivotal for XRP’s future trajectory in the market.