• XRP price breaks below the high-time-frame support level at $0.322, indicating further correction on the horizon.
  • Investors can expect a crash that could range from 40% to 55% as a result of the recent development.
  • The only two outcomes that could change this bearish outlook would be a Ripple victory in the SEC lawsuit or if Bitcoin price makes a comeback.

XRP price is at an inflection point that could trigger a further sell-off after the recent breakdown of a stable and significant support floor. Therefore, investors need to be cautious about their takes on the market, especially since Bitcoin price also looks weak.

Regardless, Ripple continues to wage legal war with the US Securities and Exchange Commission (SEC) to prove that XRP was and is not a security. 

SEC v. Ripple update: The Daubert motions

After an argument over the speech given by former SEC chairman William Hinman, the defendants point out that the SEC is taking extreme actions to avoid public scrutiny of the names of experts and their criticisms.

Furthermore, Ripple's lawyers suggest that the SEC's attempt to obfuscate the identities and opinions of experts is not just unprecedented but has a lack of evidence. Some argue that the regulatory bodies are abusing the “Protective Order” to prevent criticism of its experts from reaching the public.

The Daubert motions will be filed by both parties on July 12 and will decide who will gain the upper hand from this.

While the initial announcement of the SEC bringing a lawsuit against Ripple and XRP was brutal, it also caused the price of the underlying asset to tank 60% in under two weeks. Interestingly, the technicals point out that XRP price could revisit this situation due to the weak market conditions.

XRP price ready to hemorrhage

XRP price shows that it has breached the high-time-frame support level at $0.322. This development is bearish no doubt, but a rejection of the recovery will seal the flip of this foothold into a resistance barrier.

In such a case, investors can do nothing but observe the 40% crash that plunges the XRP price to the volume point of control (POC) at $0.187. This level is where the most volume was traded between January 2017 and July 2022.

There is a good chance the buyers might step in here to scoop up XRP price at a discount. Such a development could trigger a minor attempt to recover. However, if the selling pressure is too high, the final resting grounds for XRP price would be the $0.134 support level.

XRP/USDT 1-day chart

XRP/USDT 1-day chart

While things are looking bad for XRP price, a recovery above the $0.322 support level will be the first signs of a bounce. However, until bulls manage to flip the $0.509 hurdle into a foothold, things will remain mostly neutral.

Only a higher high above the March 28 swing high at $0.912 will invalidate the bearish outlook for XRP price.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP