Key points:
- XRP price dips below $0.60 amid SEC-Ripple lawsuit, hinting at a bearish outlook with the potential to drop to $0.54.
- Over 14,000 large XRP transfers by whales in 10 days correlate with price decline.
- Technical analysis suggests XRP could reverse the downtrend if it closes above $0.60.
The XRP token experienced a price decline, breaching the $0.60 support level amidst the ongoing legal tussle between the Securities and Exchange Commission (SEC) and Ripple. This downturn follows the recent joint filing by both parties of a sealing proposal concerning the remedies-related brief set for March 22. As the case progresses, market analysts speculate further losses for XRP, potentially reaching $0.54.
The lawsuit’s impact on XRP’s market position is evident, with the native token of the XRPLedger showing signs of a sustained downtrend. This is particularly noteworthy as Ripple and the SEC prepare for critical submissions in their legal battle. The joint sealing proposal, aimed at addressing sealing issues for upcoming briefs, suggests that details of these documents will remain confidential until at least March 26.
Market movements have also been influenced by significant activity among XRP’s large wallet investors, who have engaged in over 14,000 high-volume transactions in the past 10 days. Data from Santiment indicates these transactions coincide with the token’s declining price, hinting at possible loss realization by these so-called whales. The consistent negative spikes in the Network Realized Profit/Loss metric reinforce the trend of whales divesting their XRP holdings amidst the ongoing legal uncertainties.
Technical analysis further underscores the bearish outlook for XRP, with the price already falling below crucial support levels. Early on March 20, XRP touched a low of $0.5685, underscoring the token’s vulnerability to further declines. Key indicators, such as the Moving Average Convergence Divergence, reveal negative momentum, aligning with predictions of continued bearish trends.
However, a potential reversal in XRP’s fortunes hinges on its ability to reclaim and stabilize above the $0.60 mark. A daily candlestick close above this level, coupled with an improvement in the Relative Strength Index towards the neutral 50 mark, could invalidate the current bearish sentiment. This scenario could pave the way for a recovery, targeting the $0.65 resistance level as the next milestone for XRP’s price trajectory.
