XRP has regressed to its pre-favorable ruling levels from July 13 in a notable shift towards bearish sentiment. This downturn transpired following a recent decline of 15%, spurred by various factors such as legal proceedings’ updates and fluctuations in market volatility.
XRP Dips Below $0.55
Although there was a dip soon after reaching the $0.9380 peak on July 13, XRP managed to hold onto some of its gains from the spike induced by the court’s decision.
XRP dipped below the $0.80 threshold later in July but found vital support around the $0.70 mark. Unfortunately, on August 4, after three continuous days of drops, the cryptocurrency finally slipped below this $0.70 support level.
XRP had been holding onto $0.60 as its last line of defense since August 4. This defense has now succumbed to the bears. A 14% collapse yesterday was the final blow, as XRP broke below $0.55 for the first time in over a month.
Could Ripple vs SEC Battle Trigger This Downtrend?
This retracement has extended into the present day, as XRP has declined by 13.61% in the last 24 hours. This ongoing downward trend is a consequence of significant selling pressure prompted by concerns related to the legal battle between Ripple and the SEC, coupled with the prevailing bearish sentiment across the wider market.
SEC’s Motion Granted
In the latest twist in the SEC versus Ripple lawsuit, Judge Analisa Torres has approved the SEC’s plea to submit a motion for an interlocutory appeal.
It’s worth noting that on August 9, the SEC put forth a motion asking for authorization to lodge an interlocutory appeal concerning Judge Torres’ decision on Ripple’s systematic XRP sales and other distributions.
Unfortunate Decline Hits Crypto Market
XRP’s recent drop below $0.50 was further fueled by the overall state of the wider cryptocurrency market. The broader market experienced a significant decline recently, resulting in liquidations amounting to $1 billion within a 24-hour period. This market downturn also marked Bitcoin’s largest liquidation event since June 2022.
Simultaneously, this crypto market decline coincided with a rapid upswing in US bond yields following the release of the latest FOMC minutes. These minutes divulged details from the July meeting, hinting at the possibility of an impending interest rate hike.
These factors acted as catalysts for the recent downturn in the crypto market. Moreover, the market slump coincided with a filing by Chinese real estate behemoth Evergrande, which sought Chapter 15 bankruptcy protection. This downturn across the broader crypto market has further intensified the challenges faced by XRP.
Some FUD Reports
Adding to the mix of influences, pro-XRP lawyer Jeremy Hogan pointed out a trend that could be impacting XRP’s decline. Hogan referenced a Yahoo! article discussing the recent endorsement given to the SEC by Judge Torres.
“Are misleading headlines responsible for XRP crashing more than other crypto?” Hogan posed this question in a recent post on X.
Even though these headlines may not have directly initiated XRP’s decline, fear, uncertainty, and doubt (FUD) generating news stories can exacerbate investor concerns. This trend has the potential to amplify selling pressure and add to the downward price movement.
As of the current moment, XRP is being traded at $0.5079, reflecting a 19.48% decrease in value over the past week. The asset is currently aiming to regain the $0.50 threshold and establish a robust position above this level. Doing so would serve as a protective measure against potential future declines.