TL;DR

• The cryptocurrency market has faced significant declines, with major assets like Binance Coin, Dogecoin, and XRP experiencing double-digit losses.
• XRP’s future may improve with technical indicators suggesting a rebound.

Another Red Day

The cryptocurrency sector has been experiencing a substantial downfall in the past several days, with the global market capitalization plunging under $2.1 trillion (per CoinGecko’s data).

The correction intensified today (July) as numerous leading digital assets, such as Binance Coin (BNB), Dogecoin (DOGE), Toncoin (TON), and many more, recorded double-digit losses. Ripple’s XRP is also among the poorest performers, with its price slipping by 13% on a daily scale and sinking below the $0.40 mark for the first time since March 2023.

Prior to the crash, though, multiple analysts speculated that XRP was on a bullish path and set to reach a new all-time high in the near future. Crypto Rover—an X user with almost 800,000 followers—recently assumed that the asset is in a consolidation phase as long as it trades in the $0.13-$1.50 range.

EGRAG CRYPTO chipped in on July 3 when XRP was worth around $0.46. They claimed the token was getting close to reaching an important resistance level known as Fibonacci 1.618.

“If history repeats itself halfway, then we’re eyeing $27,” the analyst stated.

One key indicator – the XRP Relative Strength Index (RSI) – signals that the asset might indeed experience a revival in the short term.

The technical analysis tool measures the change and speed of price movements varying from 0 to 100. A ratio above 70 suggests a potential correction could be imminent, while a score below 30 hints at a potential upward reversal. Data shows that currently XRP RSI is pointing at 11.6, the lowest level since August 2023.

The Impact of the Ripple v SEC Case

Another major element that could positively affect XRP’s price is a final resolution of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC). It is worth noting that a rally is most likely to happen in the event of a decisive victory for the company.

The legal battle has been ongoing since December 2020 and is currently in its trial phase. It is centered around allegations that Ripple and some of its executives conducted an unregistered securities offering by selling XRP tokens.

The SEC initially sought a $2 billion fine on the firm, while the latter argued the amount should not exceed $10 million. Shortly after, the regulator softened its tone, proposing a reduced penalty of $102.6 million.

Despite being in its final stage, the outcome of the lawsuit may be prolonged for years due to the complexity of the legal process and possible appeals from both sides. One person who believes an official end might occur this month is the American attorney Fred Rispoli. Those curious to learn more about the case and its potential impact on XRP’s price, feel free to take a look at our dedicated video below:

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