Over the last 24 hours, the price of XRP has dropped 3% trading around $2.37, despite a 25% surge in volume. This unexpected dip followed Ripple’s announcement of a long-awaited settlement with the U.S. Securities and Exchange Commission. Investors had anticipated a strong rally, but the opposite occurred.
The token briefly touched $2.33 before recovering slightly. It now tests resistance near the 20-day Exponential Moving Average, which sits around $2.38. This level has become a critical battleground for both bulls and bears.
Ripple’s Legal Victory Should Have Triggered a Price Surge
Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the settlement, which brought years of legal uncertainty to a close. Many expected XRP to soar after this win. Instead, traders watched in disbelief as the price slipped.
This reaction sparked widespread confusion across the crypto community. Positive news typically drives bullish momentum. However, XRP seemed to defy that logic. Something else appeared to influence the market.
Traders Suspect Market Manipulation Behind the Drop
Shortly after the price dip, a popular crypto analyst, Vincent Van Code, launched a poll on X (formerly Twitter). He asked the community what they believed caused XRP’s decline. Nearly half of the respondents blamed market manipulation.
Van Code suggested that some players may be suppressing XRP’s price to avoid legal implications tied to securities laws. This theory stems from concerns around the Howey Test, which determines what qualifies as a security in the U.S.
Interestingly, only 12.5% of poll participants believed Ripple was dumping XRP. Ripple advocate Bill Morgan quickly dismissed that notion. He criticized the idea, calling it “idiotic” and outdated. He stressed that Ripple’s actions were not responsible for the price movement.
The poll also revealed that 28.6% blamed broader market weakness, while 9.4% pointed to general XRP selling pressure. Still, the majority leaned toward the idea of coordinated price suppression.
XRP Holds a Critical Technical Level
From a technical standpoint, XRP sits at a pivotal moment. The price currently hovers at the 20-day EMA, acting as short-term resistance. If XRP pushes through this level, it may aim for the upper Bollinger Band around $2.56.
That move could open the path toward the $3 mark, a psychological level many traders are watching. However, if the price drops below $2.33, the next key support lies near the lower Bollinger Band at $2.09.
The Relative Strength Index (RSI) currently stands at 48.95. This neutral reading suggests the market is undecided. A move above 50 would indicate growing bullish momentum. On the other hand, a dip below 45 might confirm renewed selling pressure.
The Market May Be Underplaying Ripple’s Win
Despite the legal clarity Ripple has achieved, XRP’s price behavior suggests otherwise. The lack of a rally hints at deeper forces at play. Many believe market manipulation is dampening the positive effect of Ripple’s SEC victory.
This could explain the sharp drop despite increased trading volume. With so much investor interest, a drop under normal conditions seems unlikely. It’s no wonder traders are questioning the integrity of recent price action.
Traders Must Watch Key Levels Closely
Right now, XRP traders need to remain vigilant. The $2.38 resistance zone will likely determine the next directional move. If XRP breaks above that line, bullish traders may target $2.56 or higher.
However, if the token loses support at $2.33, it could trigger a sharp drop to $2.09. That move would confirm bearish sentiment in the short term. Until then, traders must monitor RSI movements and watch for changes in trading volume.
Final Thoughts on XRP’s Strange Price Reaction
XRP’s 3% dip following Ripple’s major win has raised more questions than answers. The community strongly believes manipulation is involved. Ripple has clarified its position, and the fundamentals look stronger than ever.
Yet, the price remains stuck in a range that doesn’t reflect the progress made. For now, XRP is at a crossroads. The next few days may determine whether it breaks out or breaks down.
Read Also: Ripple CEO Defends XRP’s Role in Global Payments at IMF Event
As the market processes Ripple’s legal triumph, traders must remain focused and strategic. Keep an eye on key levels. Watch for RSI shifts. Most importantly, don’t ignore the possibility that something larger may be influencing the charts.
