After a promising period of growth, XRP, the popular cryptocurrency, was hit by bearish pressure, causing its value to plummet from $0.91 to $0.62. Over the past three days, the token has seen three consecutive red candles, a clear indicator of a bearish trend.
Today, the situation worsened as XRP experienced an additional 2.42% drop, pushing the support level down to $0.6172. These continued declines are caused by a combination of factors, contributing to widespread selling pressure and investor uncertainty.
Shadows Cloud XRP’s performance
A major factor behind XRP’s decline is the looming possibility of an appeal from the U.S. Securities and Exchange Commission (SEC) in the pending Ripple lawsuit. Legal experts are concerned that protracted legal battles could lead to long-term uncertainty for investors.
In a statement, Ripple Chief Legal Officer Stuart Alderoty stated that “we will not shy away from the likely SEC appeal of the federal court ruling. And I believe the Court of Appeals will uphold Judge Analisa Torres’ ruling.” Despite Alderoty’s reassurance, investor concerns continue to affect the token’s performance ahead of a lengthy legal battle.
Adding to the concerns is a recent ruling by SDNY District Judge Jed Rakoff in SEC v. Terraform Labs, which challenged Judge Torres’ ruling. This development has raised fears that the Court of Appeals could take a similar approach, further contributing to XRP’s downward spiral.
Read more: SEC’s double standards exposed: Preferred Ethereum, frowned upon by Ripple?
US dollar is gaining strength
The strengthening US dollar index (DXY) since July 27 has also played a role in influencing the value of XRP. The significant appreciation of the DXY over the past week has put a strain on the token’s performance. In addition, the 24-hour trading volume for XRP has declined, indicating diminishing investor interest.
With these factors combined, XRP is facing a challenging environment in the crypto market. Investors are watching developments closely as the token navigates uncertainties.
Critical Levels For XRP Price
The price of XRP has taken a hit and has fallen to test the lows at $0.62. analyst WatersAbove has issued a warning stating that XRP must maintain its position above the 34-day EMA on the daily timeframe to avoid a possible collapse to the $0.55 to $0.58 range.
XRP is currently trading at $0.6207 and has breached the 34-day EMA ($0.6525). If WatersAbove’s forecast is correct, we could witness further declines to the $0.58 area. However, XRP is still holding two major levels of support before hitting the $0.58 zone.
Related: XRP Price Analysis: A Closer Look At XRP’s Demise Leads To A New Buying Spot!
XRPs crucial support at $0.6090, which aims to protect against falls below the psychological level of $0.60. A break below $0.60 may be imminent if this support fails. In such a scenario, another support is waiting at $0.5962, which acts as a buffer against a drop to the $0.58 level.
Investors are keeping a close eye on these support levels as XRP navigates through its current price challenges.