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May 22, 2024
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Ripple’s XRP Breaks Below Crucial Support Level! Will XRP Price Crash Toward $0.5?

The post Ripple’s XRP Breaks Below Crucial Support Level! Will XRP Price Crash Toward $0.5? appeared first on Coinpedia Fintech News

In recent days, Ripple’s XRP has underperformed, largely due to the unresolved issue of XRP’s security status and various controversies surrounding it. Additionally, concerns around the SEC’s appeal against Ripple’s partial victory have brought fear among traders, pushing the XRP price into bearish territory and even below a critical support level. Consequently, traders are questioning whether the bullish impact of Ripple’s partial victory has faded and if the price might soon crash toward $0.5. 

XRP Lost $1.5 Billion From Market Cap 

Following Ripple’s partial legal triumph against the US Securities and Exchange Commission (SEC), XRP reached a high of nearly $0.94. However, since then, the price of XRP has undergone a substantial correction.

The crypto market had been keenly observing the legal dispute’s outcome. Although the initial victory gave the price a boost, recent market trends have resulted in a significant pullback in XRP’s price, which is now more than 22% off its recent peak.

As part of this wider downtrend, XRP’s price saw another significant drop in the last 24 hours, falling nearly 5%.

This sharp decline wiped out approximately $1.5 billion from the crypto token’s market cap, reducing it from $36.2 billion to $34.7 billion. At one point, the market cap had decreased by $2 billion before regaining around $0.5 billion.

However, there is still hope for a bullish recovery as Ripple has been forging ahead with its partnerships in regulated regions such as the UK, Europe, Singapore, Dubai, and the Middle East. In an interview with CNBC, Ripple’s President, Monica Long, expressed the company’s readiness to reestablish its presence in the US. 

This development is expected to serve as a positive catalyst for the price of XRP, the native token of XRPLedger.

What’s Next For XRP Price?

XRP managed to bounce back from the $0.65 support level, but the upward momentum couldn’t be maintained further as the price already hit the crucial support level. This indicates that every minor rally is being met with selling pressure from the bears, and the XRP price is preparing for a big move ahead. As of writing, XRP price trades at $0.669, declining over 2.3% in the last 24 hours. 

The bears are making another attempt to drag the price down to the $0.65 support level, but bulls are defending strongly. However, when a support level is tested repeatedly within a short time frame, it tends to weaken. If the $0.65 level fails to hold, the XRP price could potentially drop to the breakout level of $0.59. 

On the other hand, if the price strongly rebounds from $0.65, it would suggest that the bulls are putting up a strong defense at this level by buying in the dip. This could drive the price toward the immediate resistance at $0.743. A successful break above this level could pave the way for a potential rally to $0.856.

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