XRP’s Price Nears Crucial Junction as Years of Consolidation Reach Climax
After failing to defend the support level of approximately 62 cents last month, the price of XRP, which is backed by Ripple Labs, has been heavily affected by bearish pressure in recent days. Despite attempting to rally above the resistance level of around 58 cents on Monday, the large-cap altcoin with a fully diluted valuation of about $52 billion was unsuccessful.
Therefore, it is likely that the price of XRP will continue to decline, potentially dropping below 50 cents in the near future. Adding to this, the XRP price has consistently closed below the important weekly rising Logarithmic support level for the past five weeks.
In order for XRP to regain bullish momentum and avoid becoming a “zombie coin,” it is crucial for the altcoin to consistently close above the weekly 50 Moving Average (MA). However, if the bulls fail to establish control, the altcoin could easily fall towards the support level of around 42 cents in the coming weeks.
One key factor that could help rejuvenate XRP bulls is for Ripple to win its case against the United States Securities and Exchange Commission (SEC). The outcome of this legal battle will have significant implications for the future of XRP.
On Tuesday, the SEC filed its remedies reply brief and supporting exhibits under seal. In response, Ripple filed its redacted remedies reply brief and supporting exhibits for entry to final judgment.
Looking ahead, Ripple Labs has been actively defending XRP in court against the SEC’s regulatory actions. With the US Congress working towards creating clearer regulations for cryptocurrencies and stablecoins, XRPL developers are hopeful for a more positive future.
Additionally, Ripple recently launched XRPL’s automated market maker (AMM) and plans to introduce its fiat-backed stablecoins later this year.
However, for Ripple to remain competitive in the cryptocurrency market, it must evolve XRPL into a major Web3 hub, similar to Solana (SOL) and Ethereum (ETH). Otherwise, it runs the risk of being overshadowed by even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
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Ripple (XRP)