XRP Price Struggles Is Reclaiming Top Spot Possible 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-week moving average.
The recent green light for Ethereum (ETH) exchange-traded funds (ETFs) in the US has ignited optimism for the potential approval of similar offerings for other digital currencies such as XRP, backed by Ripple Labs, Solana (SOL), and the beloved Dogecoin (DOGE). While the XRP community eagerly awaits a positive outcome in the Ripple vs SEC case, recent settlement discussions with Do Kwon and Terraform Labs have provided a boost to their cause.
The Current State of XRP
Once a dominant force in the cryptocurrency realm, XRP is now witnessing a decline in investor confidence, particularly as other blockchain projects flourish under more favorable regulatory conditions. Prior to the SEC’s allegations against Ripple, XRP proudly held a top-three position among digital assets.
Currently, XRP has slipped to the seventh spot, with a market cap of approximately $29 billion and a daily trading volume of $1.1 billion.
Insights from Bill Morgan on XRP’s Performance
Bill Morgan, a well-respected Ripple supporter, has conducted an analysis of XRP’s performance, highlighting troubling trends. Despite achieving legal clarity last year when Judge Analisa Torres deemed XRP sales as non-binding agreements, the token’s trajectory remains lackluster.
While not classified as a security asset by the courts, Ripple still faces accusations of violating securities laws in its dealings with institutional investors. Speculations of a substantial $2 billion penalty loom over the company, casting a shadow on its future.
XRP Price – Facing Challenges
Morgan’s analysis paints a bleak picture, showing that XRP has been overshadowed by 88 of the top 100 crypto assets over the past year. Against Bitcoin alone, XRP has experienced a drastic decline of nearly 84% in the last six months.
Despite this downward trend, there is a glimmer of hope as XRP’s price approaches the macro apex of a triangular pattern, often indicating a potential bullish breakout. However, for bullish momentum to materialize, XRP must surpass the 200-week moving average against the US dollar.
Technical Analysis of XRP
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 relies on buyers steadfastly defending the support level above 50 cents.
The future path for XRP remains uncertain. Will it reclaim its former glory, or will it continue to lag behind its competitors? Only time will provide the answer.