The altcoin market experienced a deceleration in its recovery as Bitcoin faced a significant resistance level at $65,000. On Wednesday, the BTC value dropped below $62,000, increasing the likelihood of corrections for major altcoins, including XRP.
Ripple’s native currency, XRP, recently bounced back from a resistance level of $0.57 but continued its downward trend, forming a new lower high. Over the past two months, the XRP price has been steadily correcting under the influence of a downward trend line on the daily chart. The token was pushed down by 30% due to dynamic resistance, resulting in its current trading price of $0.522.
In addition, the SEC recently provided its final response in the compensation phase of its lawsuit against Ripple Labs, countering Ripple’s claims of recklessness and lack of clarity regarding the legal status of XRP. Despite Ripple’s argument that the court’s rejection of the “fair notice” defense should not create uncertainty for XRP, the SEC remains steadfast in its position.
The Commission emphasizes the possibility of future violations by Ripple, despite there being no violations since 2020. The SEC argues that assurances about Ripple’s changing behavior do not eliminate the need for preventive measures against future legal violations.
However, during the SEC’s latest filing, the XRP price experienced volatile movement around $0.53 due to the prevailing uncertainty. The recent reversal of the falling trend line has caused a 5% decrease in the XRP price over the past 48 hours.
If selling momentum continues and the overall resistance remains strong, this altcoin could potentially decline by an additional 9.5% to reach the support level of $0.47. Therefore, buyers will need to surpass the general trend line in order to regain control over this token. The altcoin market has slowed down due to Bitcoin encountering a major supply level. As a result, the XRP price is falling, and the uncertainty surrounding the SEC’s lawsuit is increasing. With the current selling momentum, there is a possibility of a 9.5% decline in the altcoin.
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Disclaimer: The information provided in this article is not investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
