XRP Faces Selling Pressure Amid Legal Developments
XRP, a pivotal player in the cryptocurrency market, has faced significant selling pressure, driving it down to crucial support levels. Amidst notable price movements, the resolution of the prolonged legal case between Ripple
$
3 and the U.S. Securities and Exchange Commission (SEC) has ushered in a perceived new era for the market. The culmination of this lengthy legal uncertainty has drawn attention to the increased volatility in trading volume and price movements.
Price Movements and Technical Developments
Between August 8-9, XRP’s price declined by 5%, dropping from $3.34 to $3.20. A significant surge in selling volume, particularly between 2:00 PM and 3:00 PM, accelerated the price decline. During this period, 209.67 million XRP were traded, marking the highest volume hour of the day. Following the selling pressure, buyers robustly defended the $3.20 level, pushing the price back up to $3.33.
Analysts note the importance of the $3.20 level as a key support, while strong resistance is recognized between $3.31 and $3.33. Price movements have been concentrated within the $3.20 to $3.33 range, indicating short-term fluctuations.
The Resolution Between Ripple and SEC
The five-year-long dispute between Ripple and the SEC concluded with both parties withdrawing their appeals. They jointly filed with the appellate court, requesting the case’s dismissal. The court, acknowledging this joint request, stated each party would bear its own legal costs.
Ripple’s Chief Legal Officer, Stuart Alderoty, commented on the decision, highlighting the formal application made to withdraw appeals directly to the Second Circuit following the commission’s vote.
While this development has raised expectations among market participants about the elimination of legal risks, its impact on the price may unfold gradually. Experts concur that the united front might positively influence market confidence to some extent.
Technical Indicators and Trading Trends
From a technical perspective, the $3.20 level is supported by high volume, with resistance observed between $3.31 and $3.33. Additionally, a short-term positive pattern has formed above the $3.28 level, with projections suggesting a continuation of the upward trend if $3.33 is surpassed.
Sudden volume increases overnight indicate targeted purchases by certain market players. The following 1.86 million increase in transactions may set expectations for future price movements.
Experts are closely monitoring whether the $3.20 level will be re-tested in the coming days. Surpassing the $3.33 level could indicate the end of profit-taking and a resumption of upward momentum. Institutional positioning and the legal clarity afforded by the SEC settlement are also under scrutiny.
Moreover, fund activities of some Japan-based institutions and potential impacts on the U.S. markets are on investors’ radar. Future global regulatory developments and rising demand could significantly affect the XRP price.
