XRP price has experienced a pullback, with critical support levels being tested and the potential for further declines if bulls fail to defend these levels.
The outcome of the ongoing legal battle between Ripple and the SEC is crucial for the short-term and long-term price trajectory, as analysts anticipate a resolution in the near future.
XRP, the digital asset linked to Ripple, has faced significant selling pressure this week amidst increased market volatility. Investors are closely monitoring price movements as XRP approaches important support levels. The recent downward trend can be attributed to broader market bearish sentiment driven by macroeconomic factors.
Over the past 24 hours, XRP has seen a 1.4% increase in price. However, it has lost nearly 7% over the course of the week, currently trading at $0.4995.
The market capitalization of XRP has decreased to $26.6 billion, with further declines posing a risk of the coin dropping out of the top ten cryptocurrencies. Bulls are struggling to reclaim the psychological $0.50 level, with investor sentiment turning bullish above this mark and bearish below.
While Bitcoin’s price movements have a significant influence on XRP’s price trend, the outcome of the Ripple v. SEC case is expected to have a substantial impact on the short-term, mid-term, and long-term outlook.
Recent developments in the legal case have added to the bearish pressure on XRP. Defense attorney James K. Filan revealed details of a court filing by Ripple in response to the SEC lawsuit. Ripple referenced a recent settlement in the SEC vs. Terraform Labs case, arguing that it could impact their situation.
Terraform Labs agreed to a settlement with the SEC, potentially paying close to $5 billion for conducting unregistered token sales and generating over $4 billion in profits. While the SEC initially sought around $2 billion in penalties from Ripple, they have since lowered this amount to just over $100 million. Ripple, however, contends that the penalty should not exceed $10 million.
The outcome of this legal battle not only has implications for the crypto industry but could also lead to an XRP price rally, as well as the possibility of an XRP ETF, a Ripple IPO, and collaborations with major companies.
In a recent development, Ripple announced a partnership with Archax, a regulated digital asset platform authorized by the UK’s Financial Conduct Authority. The collaboration aims to tokenize hundreds of millions of dollars worth of real-world assets on the XRP Ledger over the next year, positioning XRPL as a leading blockchain for asset tokenization. Ripple CEO Brad Garlinghouse expressed excitement about the partnership.
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