XRP Price Falls 2% in a Week, Drops Below US$0.51

Weekly crypto update: XRP Price drops by 2%, stumbling below the critical US$0.51 level

Crypto news: The XRP Ledger's native cryptocurrency, XRP, has been declining over the last week, losing 2% of its value and breaking below the US$0.51 support level. After reaching a weekly high of US$0.624010, the currency is presently trading at US$0.50093. At US$27.29 billion, XRP's market value has decreased by 3.1% during the past seven days. 

The general pessimism in the cryptocurrency space, the regulatory ambiguity surrounding XRP, and the competition from other cryptocurrencies are some of the reasons for the drop of XRP price.

Several factors, including rising interest rates, concerns about inflation, regulatory actions, and technological difficulties, have an impact on market attitude. Due to these concerns, investor trust and enthusiasm in the cryptocurrency market have decreased, which has increased selling pressure and decreased demand.

Consequently, the negative attitude has also affected XRP, which has a strong correlation with the rest of the market, and it has followed a downward trend. Since December 2020, the US$0.6 resistance level has acted as a formidable barrier for XRP, but it has not been broken. Additionally, there has been intense selling pressure on the currency at the US$0.55 and US$0.53 levels, which have now become resistance levels.

The continuing legal dispute between Ripple, the firm that created XRP, and the Securities and Exchange Commission (SEC) has also been a factor impacting the price of XRP. In December 2020, the SEC launched legal action against Ripple, claiming that the business and its leaders had offered XRP as unregistered securities and in violation of federal securities laws. 

XRP has suffered greatly as a result of the lawsuit as a lot of platforms, exchanges, and investors have stopped dealing with the coin out of concern about potential legal consequences. Additionally, other currencies including Binance Coin, Cardano, and Solana have surpassed XRP to become the third-largest cryptocurrency by market capitalization.

The litigation is still pending, and both parties have participated in several motions, discovery requests, and hearings. The SEC has asked the court to extend the discovery deadline in the case by sixty days, from February 15, 2024, to April 16, 2024. This is the most recent development in the case. The SEC contended that more time was required to examine the records and proof that Ripple had supplied and to interview more witnesses.

Contrarily, Ripple rejected the SEC's request, claiming that it would further delay the litigation and harm it. In addition, Ripple said that the SEC had behaved dishonestly and had disregarded the court's directives. The SEC's motion has not yet been addressed by the court, so the case's result is still up in the air.

Investors and the community are confused and doubtful about XRP's future and legal status because of the regulatory ambiguity surrounding it. Due to their reluctance to utilize or promote the coin, many prospective partners and developers have also had an impact on the acceptance and innovation of XRP.

XRP's parent firm, Ripple, is expected to use its massive holdings of the cryptocurrency to power a historic initial public offering (IPO). A valuation of more than US$350 billion, exceeding the largest initial public offerings (IPOs) in history, is predicted by some analysts. Regulating obstacles and market volatility, however, cast doubt on the IPO.

As XRP confronts several obstacles and challenges both short- and long-term, the price prognosis is not particularly promising. The competitive landscape, legal ambiguity, and market sentiment will likely continue to impact the coin's performance and potential, meaning it will probably remain under pressure.

It is anticipated that XRP will challenge the crucial psychological and technical US$0.5 support level shortly. The next support zones are at US$0.45 and US$0.4, therefore if the coin can't hold above this level, it may drop much lower. Strong resistance exists for the currency at the US$0.55 and US$0.6 levels on the upside, where it has already been rejected many times. For the currency to begin to rebound and move in a positive direction, it must break above these levels with significant volume and velocity.

Long-term prospects and fate for XRP may be greatly impacted by the determination of the SEC lawsuit's verdict. The coin may experience a significant increase in price and adoption if the case is decided in favor of Ripple or if the parties settle. This is because it would remove regulatory obstacles and win back the community's and investors' confidence. Ripple, however, may encounter further obstacles and problems if the case is decided against it or if it continues for an extended period. These would include a decline in market share and importance as well as more legal proceedings and penalties.