- XRP price has dropped 17.4% below its June 15 peak of $0.5649 after Hinman documents release.
- The next major barrier stands at $0.54, and XRP would need to chart a 15% gain in order to breach it.
- Ripple proponents and XRP community of holders argue that SEC executives offered Ether safe passage while prosecuting Ripple.
XRP price nosedived 17.4% since the $0.5649 high registered on Tuesday as market participants digested the contents of Hinman documents, released earlier in the week. These documents, a key element for Ripple’s lawsuit against the US Security and Exchange Commission (SEC), include internal messages, emails between SEC executives, and a detailed insight into the regulator’s stance on how decentralized crypto assets need to be so they are considered securities.
The lawsuit between the SEC and Ripple is one the main factors moving XRP price. Initially, the release of the Hinman documents caused XRP to rally as they seemed to support Ripple’s cause, but once investors digested the documents uncertainty and fear outweighed the initial euphoria, leading to a decline in the altcoin’s price.
At the time of writing, XRP is trading at $0.4802 on Binance.
Also read: XRP price settles above $0.50, wiping out gains from Hinman documents release
Hinman documents release leaves doubts
The release of Hinman documents started a debate in the crypto community on whether XRP is or isn’t a security.
Moreover, other legal documents suggest that Ripple paid millions of dollars to exchanges to list XRP in them. Faced with these accusations, Ripple CTO David Schwartz thwarted the claims and labeled them as “misrepresentation of allegations as facts”.
This tweet misrepresents allegations as facts https://t.co/twJ1CjUGLq
— David "JoelKatz" Schwartz (@JoelKatz) June 14, 2023
From a technical perspective, the altcoin looks primed for further price decline. XRP price is currently in an upward trend that started on March 15, 2023. Since then, the altcoin climbed to its peak of $0.5843, on March 29. XRP attempted a recovery to the March 29 peak and touched a high of $0.5649 on June 15, Tuesday, the day Hinman documents were released.
XRP price is currently below two long term Exponential Moving Averages, the 10-day and 50-day EMAs at $0.5061 and $0.4871 respectively. These two levels could act as immediate resistance for the altcoin, once it begins its recovery. The next key resistance level is $0.4912, XRP price stayed below this level since mid-April 2023.
The 200-day EMA at $0.4509 is a key support level for XRP. The 50% and 61.8% Fibonacci levels of the asset’s climb from March lows to the $0.5843 peak are two key supports for XRP, at $0.4708 and $0.4440 respectively.
XRP/USD one-day price chart
A decisive close below the trendline, is likely to confirm a bearish trend reversal in XRP.
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
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.