Originally published on: October 03, 2024
The XRP price has plummeted by nearly 12.75% in the past 24 hours, hitting a monthly low of $0.511 on Oct. 3. The reason behind this decline can be attributed to the recent appeal filed by the United States Securities and Exchange Commission (SEC) in the Ripple lawsuit. To add to the downside sentiment, tensions in the Middle East have also played a role in the drop.
Legal experts expected the SEC’s move after Judge Analisa Torres ruled back in 2023 that secondary sales of Ripple’s XRP did not classify as securities transactions. This decision indicated that XRP itself did not meet all the criteria to be classified as a security or investment contract.
Since the SEC’s appeal, XRP’s price has fallen by approximately 16%, erasing all gains made in September. Traders are now wary of holding XRP due to the possibility of a higher court overturning the previous decision and reclassifying the digital token as a security.
The escalating tensions in the Middle East have further fueled the sell-off, with XRP joining the broader risk-off market sentiment. The recent airstrikes in Beirut and potential retaliation against Iran have led investors to seek refuge in safe-haven assets like the US dollar and bonds.
XRP’s price movement has been confined within an ascending channel trend, with clear resistance around the $0.65-$0.69 range and support near $0.50-$0.52. The current price sits at the channel’s support trendline, indicating potential buying interest at around $0.5165.
While a bounce back could see XRP testing the upper resistance at $0.65 by October, a breakdown below the support levels could result in further declines, with the next potential support at $0.4639.
Investors should conduct their research before making any decisions, as trading and investing in cryptocurrencies carry inherent risks.
