Recently, Ripple’s XRP has underperformed, partly as a result of the numerous scandals surrounding it and the unresolved worry regarding XRP’s safety standing. Additionally, concerns among traders about the SEC’s favouring of Ripple’s partial triumph have caused the XRP price to decline and even go below a critical support level. Because of this, traders are speculating about whether Ripple’s partial success has lost some of its optimistic impact and whether the price could soon drop to $0.5.
XRP lost $1.5 billion from market capitalization.
Following Ripple’s legal partial victory with the US Securities and Alternate Fee (SEC), XRP surged to a high of around $0.94. However, XRP’s value has since experienced a significant fall.
The outcome of the legal issue had been closely watched by the cryptocurrency market. Although the preliminary victory increased the value, recent market trends have caused a significant decline in XRP’s value, which is presently more than 22% below its most recent peak.
Within the past 24 hours, XRP’s value experienced yet another significant decline, plummeting close to 5% as a result of this broader downtrend.
The market cap of the cryptocurrency token dropped from $36.2 billion to $34.7 billion as a result of this abrupt dip, losing about $1.5 billion. The market cap first dropped by $2 billion before recovering roughly $0.5 billion.
Ripple has been moving forward with its relationships in regulated regions including the UK, Europe, Singapore, Dubai, and the Middle East, so there is still potential for a bullish recovery. Monica Lengthy, the president of Ripple, stated the company’s preparedness to rebuild its presence in the US in an interview with CNBC.
It is believed that this expansion would serve as a beneficial driver for the value of XRP, the native token of XRPLedger.
What Will Happen To The Value Of XRP?
XRP was able to recover from the $0.65 support level, however the upward momentum could not be sustained further as the price had already reached the critical support level. This indicates that the XRP price is preparing for a significant move forward and that each modest rally is being met by selling pressure from the bearish. XRP value is currently trading at $0.669, down more than 2.3% over the last day.
The bulls are putting up a strong fight against the bears’ latest attempt to drive the price down to the $0.65 support level. However, a help level tends to deteriorate over time when it is regularly tested in a short period of time. The value of XRP may undoubtedly fall to the breakthrough level of $0.59 if the $0.65 degree fails to hold.
In contrast, if the price sharply rises from $0.65, it will suggest that the bulls are putting up a strong defence at this level by buying during the downturn. This could push the price in the direction of the quick resistance at $0.743. A successful break above this level could open the door for a potential rally to $0.856.
