The altcoin market experienced a deceleration in its recovery as Bitcoin faced a significant resistance level at $65,000. This led to a decline in the BTC price, which dropped below $62,000 on Wednesday. As a result, major altcoins like XRP are likely to undergo corrections.
Speaking of XRP, its native currency has recently rebounded from a resistance level of $0.57 but continued its downward trajectory, forming a new lower high. Over the past two months, the XRP price has been steadily correcting as it follows a downward trend line on the daily chart. The token faced dynamic resistance and experienced a 30% decline, falling from $0.744 to its current trading price of $0.522.
Additionally, the SEC has presented its final response in the compensation phase of its lawsuit against Ripple Labs, countering Ripple’s claims of recklessness and lack of clarity regarding the legal status of XRP. Despite Ripple’s argument that the court’s rejection of the “fair notice” defense should not create uncertainty for XRP, the SEC remains steadfast in its position. The Commission highlights the possibility of future violations by Ripple and asserts that assurances of behavioral changes do not negate the need for preventive measures against legal violations.
In light of the SEC’s latest filing, the XRP price has exhibited volatile movement around $0.53, causing uncertainty in the market. The recent reversal of the downward trend line has resulted in a 5% decrease in the XRP price within the last 48 hours.
If the selling momentum persists and the overall resistance remains strong, XRP could potentially drop by an additional 9.5% to reach the support level of $0.47. Therefore, buyers must overcome the general trend line to regain control over this altcoin. The altcoin market has slowed down due to Bitcoin’s encounter with a major supply level, leading to a decline in the XRP price. Furthermore, the uncertainty surrounding the SEC’s lawsuit has intensified. With the selling momentum, the altcoin may experience a further 9.5% drop.
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Disclaimer: This article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. Conduct your own research before making any investment decisions.
