In yesterday’s trading session, the Ripple price plunged by over 6 per cent after trading in an aggressive bullish trend for over a week. Today, the bearish trend looks poised to continue, with Ripple already down by almost 3 per cent and showing signs of dropping further based on intraday trading data.
The current price drop comes amidst concern about the platform’s ongoing legal battles with the U.S. Securities and Exchange Commission, which stems from the SEC’s accusation that the sale of XRP tokens in 2020 could qualify as securities. For almost two years, Ripple has denied that it sold the XRP tokens as securities and has been locked in a legal showdown with the SEC since late 2020.
Before the collapse of the FTX, there was a general feeling that the case was headed for collapse or might be ruled in Ripple’s favour in the coming months. However, Ripple CEO Brad Garlinghouse recently indicated the company was not expecting the ruling to be made this year.
Instead, he indicated they would likely have to wait until the first half of 2023. However, in his statement, he did not rule out getting into a settlement with the SEC on condition that they recognize XRP as a nonsecurity.
With the ruling date having a bit of certainty following the recent clarification from Ripple, the recent price drop may be a result of the crypto responding to current market forces that have seen the entire cryptocurrency industry enter a bearish trend. Due to its significant correlation with the industry, an industry-wide bear market also means Ripple will lose its value.
The current price action also points to Ripple starting a new bearish trend. Therefore, my Ripple price prediction expects the current bearish trend to continue. There is a high likelihood we might see prices dropping below the $0.33 support level and possibly trading below the $0.30 price level. However, a trade above the $0.40 price level will invalidate my bearish analysis.
This post was last modified on Nov 21, 2022, 11:22 GMT 11:22