Highlights:
- XRP is currently in a bear trend as the selloff intensifies
- XRP price could drop much further if $0.50 support is broken
- The SEC’s appeal in the Ripple case could drive selloff
XRP price is experiencing a notable downturn today, mirroring a broad selloff across the cryptocurrency market. At the time of writing, XRP was trading at $0.517, reflecting a steep 14.11% decline in just one day.
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The correction in XRP’s price is part of a larger market-wide slump, which has seen Bitcoin fall from $64,000 to its current price of $60,378. However, in addition to this general market downturn, internal issues are driving the XRP selloff.
Impact of the SEC’s Motion of Appeal on XRP
One key factor exacerbating XRP’s current sell-off is news that the U.S. Securities and Exchange Commission has filed a motion of appeal in its ongoing case against Ripple Labs. The appeal introduces a fresh wave of uncertainty around the XRP price, further impacting investor sentiment.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The @SECGov has filed a Notice of Appeal of Judge Torres’s Ruling. pic.twitter.com/j8bLIZQ5LT
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 2, 2024
The SEC’s motion to appeal indicates the regulatory body’s intention to challenge the final judgment entered by the United States District Court for the Southern District of New York on August 7, 2024.
The notice of appeal reads, “Plaintiff Securities and Exchange Commission hereby respectfully appeals to the United States Court of Appeals for the Second Circuit from the final judgment entered by this Court.” This development has quickly dampened optimism in the market and has caused concerns about the potential regulatory ramifications for XRP and similar digital assets.
This unexpected move by the SEC has heightened investor concerns just as the broader market was beginning to show signs of weakness. The filing of this appeal effectively counteracts some of the positive news XRP had received earlier in the week.
Positive Developments for XRP Overshadowed
One positive development for XRP is Bitwise’s filing of an XRP ETF. This move could potentially attract significant institutional investment into XRP and provide a long-term boost to its price and credibility in the market. However, news of the SEC’s appeal has overshadowed these positive developments, casting a shadow over the token’s short-term prospects.
According to Fox Business, Bitwise has filed the first S-1 application for an XRP ETF, becoming the first company to apply for an XRP-based spot ETF. The application was submitted to the U.S. SEC on Wednesday morning. Bitwise CEO Hunter Horsley said XRP is one of the most… https://t.co/BZ9EyX1N1o
— Wu Blockchain (@WuBlockchain) October 2, 2024
Technical Analysis – Bearish Trend Strengthens for XRP Price
From a technical perspective, XRP is firmly entrenched in a bearish channel, with strong selling volumes reinforcing this downward trend. The immediate concern for traders and investors is whether XRP can hold its current support levels. If the ongoing selloff continues at its current pace, XRP could be heading for a break below the $0.50-mark intra-day.
On the other hand, if a reversal occurs, the XRP price would first need to push through the $0.540 resistance to signal a potential recovery. A rally beyond this level could pave the way for a run to $0.60, providing a much-needed respite for investors. However, given the current market sentiment and the prevailing bearish trend, a further decline below $0.50 appears to be the more likely scenario in the short term.
Recap – Uncertain Road Ahead for XRP
The market outlook for XRP remains murky. The SEC’s appeal has injected a fresh element of regulatory risk, just as the cryptocurrency market is grappling with broader selloff pressures. Although positive developments, such as Bitwise’s XRP ETF filing, present potential catalysts for future gains, they are overshadowed by regulatory concerns.
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