XRP’s recent price drop is similar to a similar situation following Judge Torres’ July summary judgment ruling. After Judge Torres decided to dismiss the SEC’s appeal request, XRP lost 72% of its gains, leaving investors in the lurch. XRP’s current status for October shows a 2.68% drop, erasing gains from earlier in the month.
XRP, the fifth largest cryptocurrency by market cap, fell along with the cryptocurrency market on October 9. XRP’s main trajectory showed a price swing from $0.52 to an intraday low of $0.487, a three-week low from September 18. XRP has since hit its lowest point, but is still down 3.81% in 24 hours and is trading at $0.509. This volatility has left many wondering if XRP will live up to expectations or remain at a disadvantage.
Furthermore, if XRP breaks out of the 200 and 50-day MA, it can reach $0.5470 but it is expected to face selling pressure. The RSI indicator could drop to $0.4700 and then it might turn oversold.
From Boom to Bust: Is XRP’s Rise Questionable?
Attorney and XRP supporter Bill Morgan observed that the recent drop in XRP price bears similarities to the previous drop following Judge Torres’ July ruling. XRP initially surged to $0.549, up nearly 9% on Oct. 3, after Judge Torres rejected the SEC’s appeal, marking a victory for Ripple in the legal battle.
However, profit-taking soon ensued, causing XRP to be negative for five of the past six days. This caused XRP to fall below its 50-day and 200-day daily moving averages of $0.51 and $0.527, respectively. As a result, XRP’s performance in October was down 2.68%, erasing all previous gains.
Cowen Share Changing XRP Dynamics
Cryptocurrency expert Benjamin Cowen has commented on the recent drop in altcoin prices, attributing it to a typical phase of the market cycle. He noted that Bitcoin’s dominance tends to rise during these periods, suggesting that altcoins tend to experience more significant declines. Cowen also stressed the importance of liquidity in influencing the market, providing a unique perspective on XRP’s price dynamics.
According to a recent study by the Bank of England, the cross-border payments industry, which is a focus area for XRP, could soar to $250 trillion by 2027. While XRP’s current price of $0.498 may seem modest, it is a reminder that there may be surprises in the crypto market. If XRP does reach a higher value, early investors will benefit greatly.
New developments in the SEC v. Ripple case have not affected investor sentiment. With no court action to consider, XRP is following the broader cryptocurrency market’s downward trend. The main focus is the conflict in the Middle East, which could dampen buyer interest.