XRP Price Faces Challenges Can it Regain Top Position Following SEC Lawsuit
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 is facing a decline in popularity among crypto investors as other blockchain projects gain momentum.
To trigger a bullish momentum, XRP’s price needs to reclaim the 200-week moving average.
The Approval of Ethereum ETFs in the US has created optimism for the introduction of similar products for other digital currencies such as XRP, Solana, and Dogecoin. XRP, once a prominent player in the crypto world, is now experiencing a decrease in investor confidence as competing blockchain projects flourish under more favorable regulations. Despite previously holding a top-three position among digital assets, XRP currently sits in seventh place with a market cap of approximately $29 billion and a daily trading volume of $1.1 billion.
Bill Morgan, a respected Ripple enthusiast, has analyzed XRP’s performance and identified concerning trends. Despite receiving legal clarity last year regarding XRP sales, the token’s performance remains lackluster. Ripple, while not classified as a security asset by the courts, faces allegations of violating securities laws in its dealings with institutional investors. Talks of a substantial $2 billion fine loom over the company, clouding its future.
Morgan’s analysis reveals that XRP has been outperformed by 88 of the top 100 crypto assets over the past year. Against Bitcoin, XRP has dropped by nearly 84% in the last six months. However, there is a glimmer of hope as XRP’s price approaches the macro apex of a triangular pattern, potentially signaling a bullish breakout. To materialize bullish momentum, XRP must reclaim the 200-week moving average against the US dollar.
From a technical analysis perspective, XRP’s trajectory suggests a target of 61 cents, aligning with the daily 1.618 Fibonacci Extension. This optimistic projection relies on buyers defending the support level above 50 cents. The future path for XRP remains uncertain – will it regain its former glory or continue to lag behind its competitors? Only time will reveal the answer.