In recent days, Ripple’s XRP has been underperforming largely due to the unresolved issue of XRP’s security status and various controversies surrounding it. Additionally, concerns about the SEC’s appeal against Ripple’s partial win have sparked fear among traders, pushing the XRP price into bearish territory and even below a critical support level. Consequently, traders are wondering if the bullish impact of Ripple’s partial victory has faded and if the price could soon crash towards USD 0.5.
XRP lost $1.5 billion in market cap
Following Ripple’s partial legal triumph against the US Securities and Exchange Commission (SEC), XRP reached a high of nearly $0.94. Since then, however, the price of XRP has undergone a significant correction.
The crypto market had been keeping a close eye on the outcome of the legal dispute. While the initial win boosted the price, recent market trends have led to a significant drop in XRP’s price, which is now more than 22% below its recent peak.
As part of this broader downtrend, the price of XRP saw another significant drop in the past 24 hours, falling nearly 5%.
This sharp drop wiped out about $1.5 billion of the crypto token’s market cap, dropping it from $36.2 billion to $34.7 billion. At one point, the market cap was down $2 billion before recovering about $0.5 billion.
However, there is still hope for a bullish recovery as Ripple has made progress with its partnerships in regulated regions such as the UK, Europe, Singapore, Dubai and the Middle East. In an interview with CNBC, Ripple’s president, Monica Long, expressed the company’s willingness to reestablish its presence in the US.
This development is expected to serve as a positive catalyst for the price of XRP, the native token of XRPLedger.
What’s next for the XRP price?
XRP managed to bounce back from the $0.65 support level, but the upside momentum could not be sustained any further as the price had already reached the crucial support level. This indicates that any small rally is facing selling pressure from the bears and XRP price is preparing for a big move forward. At the time of writing, XRP price is trading at $0.669, down more than 2.3% in the past 24 hours.
The bears are making another attempt to drag the price towards the $0.65 support level, but the bulls are strongly defending. However, when a support level is tested repeatedly within a short time frame, it tends to weaken. If the $0.65 level is not held, XRP price could potentially drop to the $0.59 breakout level.
On the other hand, if the price rebounds strongly from $0.65, it could indicate that the bulls are on a strong defense at this level by buying into the dip. This could drive the price towards the immediate $0.743 resistance. A successful break above this level could pave the way for a potential rally to $0.856.