XRP Price Falls 6.09% – What’s Behind the Drop?
XRP has taken a hit, dropping 6.09% in the past 24 hours to trade around $2.22. Interestingly, despite a 10.72% rise in trading volume to $3.56 billion, the price decline has left investors puzzled. Many are wondering: is this just a short-term dip or the start of a longer downtrend?
Ripple’s Legal Decision Fails to Boost Confidence
One key factor behind the price decline is Ripple’s recent decision to withdraw its cross-appeal in its ongoing legal battle with the SEC. Initially fined $125 million for institutional sales violations, Ripple managed to reduce the fine to $50 million after withdrawing its appeal. Despite bringing an end to a four-year legal fight, the market response was lukewarm, and XRP’s price failed to see any meaningful recovery.
Whale Activity Stagnates – A Cause for Concern?
Large investors, commonly known as whales, play a crucial role in influencing price movements. However, on-chain data shows that whales holding between 1 million and 10 million XRP tokens have remained inactive for over a week. Currently holding around 5.82 billion tokens, their silence has contributed to selling pressure, making it harder for XRP to rebound.
Technical Analysis: Key Support and Resistance Levels
From a technical standpoint, XRP needs to hold above the $2.20 support level to avoid further losses. If it maintains this zone, a recovery toward $2.32 or even $2.36 could be possible. However, if it breaks below $2.20, the next critical support lies at $2.00, with a potential downside risk toward $1.75.
Indicators like the Relative Strength9 Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest a mixed outlook. While some traders see signs of a possible rebound, others warn that the bearish trend could persist if key resistance levels aren’t broken.
Can XRP Bounce Back?
On a positive note, Ripple’s partnership2 with Chipper Cash, a leading African payments platform, could boost XRP adoption for cross-border transactions. Additionally, Gemini has introduced XRP rewards, and institutional interest in the asset continues to grow.
Despite these promising developments, XRP’s price action remains uncertain. Veteran analyst Peter Brandt has identified a potential breakout pattern. If XRP can push above $3.00, it may trigger a significant rally. However, failure to sustain momentum could see the price drop to around $1.97.
Final Thoughts
XRP is currently at a critical juncture. While legal clarity, new partnerships, and institutional adoption provide long-term optimism, weak whale activity and bearish technical indicators keep investors cautious. Whether this dip is a temporary setback or a sign of deeper trouble will depend6 on how the market reacts in the coming days.
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