The price of XRP has been under extreme pressure over the past few weeks, moving in tandem with general cryptocurrency market movements. The asset has fallen more than 20% so far this month and more than 7% last week. XRP’s overall market capitalization has plummeted to $26 billion over the past few weeks, with the total volume of assets traded on the last day falling by 11%.
regulatory issues
XRP price has recorded significant losses over the past few weeks due to bearish cryptocurrency market sentiment and regulatory concerns in the sector. Global cryptocurrency market capitalization has been under tremendous pressure over the past few weeks, with the overall cryptocurrency market cap falling slightly to $1.4 trillion. Bitcoin, the leading cryptocurrency, has been struggling below the crucial $26,000 level over the past few days, dampening the outlook for the cryptocurrency market.
Major altcoins, including Ethereum, Solana, Dogecoin, and Cardano, also succumbed to the general market outlook and fell more than 3% each. The Crypto Fear and Greed Index, which measures the key sentiment driving the cryptocurrency market, is currently at a fear level of 35, indicating increasing selling pressure.
The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs is also weighing on the price of XRP. The price of XRP surged more than 70% in July after a federal judge ruled that XRP is considered a security only when sold to institutional investors. Nonetheless, this rally was short-lived after the SEC began filing for interlocutory appeals regarding programmatic and other sales of XRP. In the filing, Wall Street regulators said they had not requested a review of XRP and that it was “nothing more than computer code with no intrinsic value.”
In particular, UK regulators have emphasized that cryptocurrencies lack intrinsic value. According to cryptocurrency observers, the SEC is trying to convince judges that cryptocurrencies are not commodities. Ripple CEO Brad Garlinghouse says Ripple is living in purgatory. Lawsuits and the SEC’s efforts to increase enforcement against Ripple and XRP have fueled the assets’ lackluster performance.
XRP price technical analysis
Looking at the daily chart, we can see that the price of XRP has been moving sideways for the past few weeks, struggling to stay above the critical level of $0.500. The digital currency remains below its 50-day and 200-day exponential moving averages and 50-day and 100-day simple moving averages. The Relative Strength Index fell slightly to 34, indicating increased selling pressure.
Therefore, the XRP price is likely to continue trading sideways in the coming sessions as it struggles to find direction. A move below the important $0.500 level could lead to further losses until the next support at $0.4545. On the other hand, a break above the major hurdle of the 200-day EMA at $0.5290 could give bulls the momentum to push the price up to the 50-day EMA.
XRP price chart