XRP Sluggish: Unraveling The Factors Behind Its Weakening
The XRP community is struggling with a significant rise in profit-booking actions due to repeated attempts at smashing through the unbreakable $0.85 resistance barrier, resulting in a severe loss of traction for the Ripple altcoin price.
The market is now anxiously awaiting the answer to the crucial question: Will the bullish forces muster enough strength to defend the critical $0.70 support level? Investors are patiently waiting for a definitive response as uncertainty reigns, aware of the delicate balance at stake.
Following reports that the US Securities and Exchange Commission planned to appeal the recent legal verdict in favor of Ripple, XRP saw a substantial 12% fall against USDT on Binance. This appeal nullified the profits achieved during the significant spike in XRP and other altcoins brought on by the lawsuit’s successful resolution.
At the time of writing, the top altcoin was trading at $0.739, down 4.6% in the last 24 hours. Despite the hiccup, XRP managed to tally a 3.0% increase in the weekly timeframe, data from crypto market tracker Coingecko shows.
After hitting a barrier near the $0.85 level, XRP lost impetus, and on-chain signals indicate that whale investors may soon give in to the developing bearish trend.
RSI Shows XRP Losing Steam
The price of XRP decreased by 17% between July 13 and July 22. The partial victory for Ripple stoked excitement among XRP holders and drove the alternative currency to its regional high of $0.9375.
It’s also important to note that XRP has yet to go very far despite a few falls over the past week as some traders took profits, with its support level still rising as of this writing.
Related Reading: Dogecoin Sees Positive Price Movement, Bulls Set Crosshair At $0.075
As a result, XRP remains a relatively safe investment for future gains in the short term, with the coin possibly on track to reach $0.85 in the coming days or weeks.
However, the Relative Strength Index data indicates that the price surge for XRP is likely to slow down significantly over the next several days.
XRP price action in the last seven days. Source: CoinMarketCap
According to the most recent data, the XRP RSI has fallen below the crucial 70 levels, reaching 68.24 at the end of July 21, after the altcoin soared to exuberant highs following the favorable SEC judgment.
US-Based Crypto Exchanges Reintroduce XRP Listings
In a recent Bloomberg article, the US SEC stated its position on a landmark cryptocurrency case, arguing that a federal court disfavored the organization. The regulator has indicated that it intends to appeal the judgment and continue its efforts to address the changing crypto landscape in an attempt to contest the ruling.
XRP market cap currently at $38 million on the weekend chart: TradingView.com
Market Sentiment Remains Upbeat
Meanwhile, since the ruling, crypto exchanges have reintroduced XRP listings in the United States. The move could provide a price boost to the token.
Despite the lack of significant developments since the ruling’s delivery a week ago, the market sentiment remains optimistic, with widespread speculation that Ripple is on the verge of announcing its initial public offering, further boosting optimism and interest in the cryptocurrency.
(The information presented here is not intended as financial guidance. Investment is not without risk. The capital you invest could potentially lose value.)
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