XRP Price Faces Challenges Will 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 bullish momentum, XRP’s price needs to surpass the 200 weekly moving average.
In the wake of the approval of Ethereum exchange-traded funds (ETFs) in the US, there is renewed optimism for the introduction of similar opportunities for other digital currencies like XRP, Solana, and Dogecoin. The XRP community is eagerly anticipating a positive outcome in the Ripple vs SEC case, with recent settlement talks with Do Kwon and Terraform Labs adding fuel to their cause.
The XRP Conundrum
Once a dominant force in the crypto sphere, XRP is now witnessing a gradual erosion of investor trust, particularly as rival blockchain projects flourish in more favorable regulatory environments. Prior to the SEC’s allegations against Ripple, XRP held a prestigious top-three position among digital assets.
However, XRP currently ranks seventh, with a market capitalization of approximately $29 billion and a daily trading volume of $1.1 billion.
Insights from Bill Morgan on XRP Performance
Bill Morgan, a respected figure in the Ripple community, has conducted a detailed analysis of XRP’s performance, revealing troubling trends. Despite the legal clarity achieved last year when Judge Analisa Torres deemed XRP sales to be non-binding agreements, the token’s trajectory remains lackluster.
There were optimistic voices last month suggesting that XRP’s price had turned a corner in its downward trend against BTC. However, the reality is stark, with a decline of nearly -84% over the past six months. XRP has been outperformed by 88 of the top 100 crypto assets in the last year.
While not classified as a security asset by the courts, Ripple is still grappling with allegations of violating securities laws in its dealings with institutional investors. Speculation looms regarding a potential $2 billion fine, casting a shadow over the company’s future.
XRP Price – A Struggle for Success
Morgan’s analysis paints a bleak picture, highlighting XRP’s significant decline compared to other top crypto assets. Against Bitcoin alone, XRP has dropped by almost 84% in the last six months.
Despite this downward trend, there is a glimmer of hope as XRP’s price nears the macro apex of a triangular pattern, indicating a potential bullish breakout. However, for bullish momentum to materialize, XRP must surpass the 200-week moving average against the US dollar.
Examining the Technicals
From a technical standpoint, XRP’s trajectory suggests a target of 61 cents, aligning with the daily 1.618 Fibonacci Extension. However, this optimistic projection hinges on buyers defending the support level above 50 cents.
The future path for XRP remains uncertain. Will it reclaim its former prominence, or will it continue to lag behind its competitors? Only time will provide the answer.