XRP Price Plummets, Falls to Two-Month Low

The value of Ripple’s XRP token has plummeted, losing more than 10% in the past 24 hours. The decline comes after the US Securities and Exchange Commission (SEC) filed an appeal on October 2, challenging a previous ruling in Ripple’s favor.

Azcnews Xrp Price Plummets, Falls To Two Month Low

Negative sentiment around the altcoin is growing, putting it on track to drop to a two-month low of around $0.47. This analysis explains why this scenario is likely.

Ripple Faces Challenge from SEC

In a recent notice of appeal, the SEC expressed its intention to appeal the ruling in its case against Ripple. The move follows Judge Analisa Torres’ decision on August 7 to impose a $125 million fine on Ripple.

The court found that Ripple’s XRP transactions with institutional investors were securities in nature, but there was no evidence of fraud or malice. Judge Torres also emphasized that while some XRP transactions may be considered securities, XRP itself is not a security.

The SEC’s appeal decision, combined with the general market decline, has fueled a sell-off in XRP. The altcoin is currently trading at $0.53, down 11% over the past 24 hours. Its trading volume has also increased by 5% over that time.

Xrp Price Trading Volume
Xrp Price Trading Volume

When an asset’s price falls while its trading volume increases, this typically reflects strong bearish sentiment in the market. The combination of falling prices and rising trading volume suggests that many investors are selling, leading to a decline in price. While high trading volume suggests significant investor interest, the trend is largely negative.

Additionally, XRP’s Relative Strength Index (RSI), an indicator that measures whether an asset is overbought or oversold, also reinforces the bearish outlook. RSI ranges from 0 to 100, with readings above 70 indicating overbought conditions and a potential correction, while readings below 30 indicate oversold conditions and a potential recovery.

Currently, XRP’s RSI is at 39.76 and continues to decline, indicating that selling pressure is still dominant and the market’s buying demand is not strong enough to counterbalance it.

Rsi Xrp
Rsi Xrp

In addition, the decline in XRP’s open interest further highlights the declining demand for the altcoin, a trend that has been evident over the past few days. XRP’s open interest is currently at $752 million, down 23% since September 29.

Open interest is a measure of the total number of futures or options contracts outstanding in the market. A decline in open interest indicates that investor participation is decreasing, indicating a decline in confidence in the token.

Xrp Open Interest
Xrp Open Interest

XRP Price Prediction: Token Nears Two-Month Low

XRP has been falling over the past week, pushing it close to a key resistance level of $0.51, and it is currently just above that level. If selling pressure continues to increase, this level may not hold, potentially sending XRP to a two-month low of $0.46.

Xrp Analytics
Xrp Analytics

If the token fails to hold this level as support, its price could continue to fall to $0.38. However, this bearish scenario would be refuted if market sentiment turns positive. In that case, XRP price could recover and head towards $0.66 in the next uptrend.

4.0/5

(1 vote)

Latest

How To Join The Blockless Airdrop

Airdrops | Editor Choice | News

How to Join the Blockless Airdrop

Join the Blockless Airdrop! This DePIN project has successfully raised $8 million and is currently launching its testnet program. The project has confirmed that there will be an airdrop for those who participate in the testnet experience.

Pepe Surges 75% In 24 Hours Following Coinbase Listing

News | Altcoin | Editor Choice | Memecoin

PEPE Surges 75% in 24 Hours Following Coinbase Listing

PEPE price has surged in the past 24 hours, after the largest exchange in the United States, Coinbase, announced the listing of this meme coin, and Robinhood also integrated PEPE into the platform.

Binance Announces Listing Of Usual On Launchpool And Pre Market

News | Altcoin | Editor Choice

Binance Announces Listing of USUAL on Launchpool and Pre-market

Binance has announced the listing of Usual as its 61st launchpool project. This is also the second project to be listed on Binance Pre-Market, following Scroll.

Blackrock Expands Rwa Market Share To Aptos, Arbitrum, Avalanche, Optimism, And Polygon

News | Editor Choice

BlackRock Expands RWA Market Share to Aptos, Arbitrum, Avalanche, Optimism, and Polygon

BlackRock USD Institutional Digital Liquidity (BUIDL) continues to expand its market share by entering four additional networks: Aptos, Arbitrum, Avalanche, Optimism, and Polygon.

Azcnews Act Memecoin On Solana Surges Nearly 3000% In A Short Period

News | Altcoin | Editor Choice | Memecoin

ACT Memecoin on Solana Surges Nearly 3000% in a Short Period

Memecoin Act I The AI ​​​​Prophecy has seen a huge price surge of nearly 3000% in the past 7 days, bringing huge profits to investors who believe in this coin.