Can XRP Recover Top Position After SEC Lawsuit Causes Price Struggles
Key Points
The recent approval of Ethereum ETFs in the US has sparked hope for similar products for other digital assets like XRP, Solana, and Dogecoin.
XRP’s popularity is waning as other blockchain projects gain traction in the market.
XRP’s price performance has been lackluster, with the need to reclaim the 200-week moving average to trigger a bullish trend.
Following the green light for Ethereum (ETH) exchange-traded funds (ETFs) in the US, there is optimism for equivalent opportunities for alternative cryptocurrencies such as XRP, Solana (SOL), and Dogecoin (DOGE). Amid ongoing legal battles, including the Ripple vs SEC case and settlement talks with Do Kwon and Terraform Labs, the XRP community remains hopeful for a positive outcome.
The XRP Predicament
Formerly a dominant player in the crypto sphere, XRP is now facing dwindling investor confidence, particularly as competing blockchain projects flourish under more favorable regulatory conditions. Once a top-three digital asset, XRP now finds itself in seventh place, boasting a market cap of approximately $29 billion and a daily trading volume of $1.1 billion.
XRP’s Performance: Insights from Bill Morgan
Renowned Ripple supporter Bill Morgan has scrutinized XRP’s performance and identified troubling trends. Despite legal clarity following a court ruling last year deeming XRP sales as non-binding agreements, the token’s trajectory remains lackluster. Recent data indicates that XRP has lagged behind 88 of the top 100 cryptocurrencies in the past year, with a significant decline of nearly 84% against Bitcoin in the last six months.
While not classified as a security asset by the judicial system, Ripple still faces accusations of violating securities laws through its interactions with institutional investors. Speculation of a substantial $2 billion penalty hangs over the company, casting a shadow on its future outlook.
XRP Price – A Cause for Concern?!
Morgan’s analysis paints a somber picture, illustrating XRP’s struggles compared to its competitors. Despite hints of a potential bullish breakout as XRP’s price flirts with the macro apex of a triangular pattern, the token must reclaim the 200-week moving average against the US dollar to secure positive momentum.
Analyzing the Technicals
From a technical standpoint, XRP’s trajectory points towards a target of 61 cents, aligning with the daily 1.618 Fibonacci Extension. However, this optimistic forecast hinges on buyers defending the support level above 50 cents steadfastly.
The road ahead for XRP remains uncertain. Will the token regain its former prominence, or will it continue to lag behind its peers? Only time will reveal the answer.