Explore the journey of XRP post-SEC victory. Uncover XRP price prediction and other aspects shaping its global economy trajectory.
With its recent legal victory in the SEC vs. Ripple lawsuit, hopes were high for a surge in its price. However, as the crypto community held its breath, the market revealed a different narrative. This post deals with the potential reasons for the XRP downtrend, its price action, and its role in the changing financial development. If you want to invest in XRP, you must read this post for a long-term view.
Despite Legal Clarity, XRP’s Price Tanks, Wiping Out Gains
Investors believe the recent legal clarity surrounding Ripple’s XRP drives a positive momentum in the market. The SEC vs. Ripple’s lawsuit led Judge Torres to label XRP as a “non-security,” marking a partial victory for the payment company. Expectations soared as the crypto community anticipated sustained price gains. However, reality had other plans.
Despite the legal clarity, XRP price action seems to continue the downtrend. As a result, the XRP/USD is currently trading around the 200-day Exponential Moving Average (EMA) at $0.52.
Moreover, XRP’s recent victory against the SEC could mark a turning point in finance. Despite the challenges posed by regulations and risk management, XRP’s rising popularity highlights the desire for alternatives to traditional banking systems. Big banks are taking notice and reconsidering their strategies due to the crypto threat. Some are even integrating XRP’s innovations. This merging of old-school finance with new tech signals a major shift.
The focus of investors is now shifting back to the ongoing legal battles between the SEC and Ripple, as well as the SEC and Coinbase. The market will show positive momentum when the SEC approves the BTC-Spot ETFs. As a result, the institutional funds will flow into the crypto market. On the flip side, outcomes in the Coinbase and Ripple cases will play a pivotal role in shaping the future of US crypto regulations. In this case, the Ripple’s CEO’s view is worth considering.
Brad Garlinghouse stated that while the recent outcomes are positive, it’s unfortunate that many within the crypto community have to resort to legal processes to showcase the SEC’s flawed judgments and interpretations of both facts and laws.
XRP Price Action & Technical Analysis
XRP’s recent price action shows a downtrend, currently trading around $0.5 with resistance at $0.54 around the 50-day EMA. A robust Ripple opposition filing could empower the bulls to challenge the $0.6 resistance area.
However, the possibility of a successful SEC appeal may lead to further losses. If the XRP price fails to sustain a 200-day EMA, then $0.4 support will come into play.
With a Relative Strength Index around 35, XRP might bounce back before entering the oversold territory. The XRP price prediction indicates that the coin could achieve a peak value of $0.98 while maintaining a minimum price of $0.40 in 2023. Besides technical aspects, you should also consider the whale’s activities for short-term forecasts.
Whales Redistribute XRP Holdings
The decline in XRP’s price finds support in an on-chain metric. XRP whales owning 100,000 to 1,000,000 XRP tokens have been consistently decreasing their holdings and redistributing them, adding to the selling pressure faced by the asset. As a result, investors are expecting a potential downtrend in the next few months.
XRP Price Action Points to Potential 7% Decline
In terms of price projection, the XRP token faces the risk of a 7% decline. The technical analysis of XRP shows that the price must cross the 200-day EMA (on either side) to get momentum in the market. In the last few days, XRP has been trapped in a consolidation phase, raising the possibility of a downtrend rather than breaking the resistance of $0.6. If any weekly candle closes below $0.5 decisively, then the XRP price may take the next support around $0.4. However, here is the good news for you:
On-chain Metrics Indicate XRP’s Undervaluation Persists
Despite recent developments, a glimmer of positivity emerges from on-chain data, indicating that XRP remains undervalued. Although bearish sentiment in the crypto market is currently prevalent, the potential for a positive shift remains viable in the long run. This observation supports the ongoing activity on the Ripple blockchain, even in the face of declining prices. It also supports the long-term investors, who have been holding XRP coins in anticipation of a momentum shift in the future.
Volatility Creates Investment Opportunities
In the world of finance, volatility should be seen as an opportunity rather than a threat. XRP, renowned for its speedy cross-border transactions, is emerging as a strong contender against the traditional banking system. Its technology enables secure and seamless transfers that break free from traditional banking boundaries. As a result, the demand for the Ripple network may surge the volatility in the price action. You should capitalize on the opportunity.
Conclusion
While XRP’s current price action might appear bearish, it is essential to consider the bigger picture. Volatile markets are opportunities for strategic investors. By focusing on the coin’s potential use cases and its technology, investing for the long term could lead to significant gains as the market stabilizes and adoption grows.