XRP -70% in 1 Month Amid Regulatory Pressure

Generated by AI AgentCryptoPulse Alert
Saturday, Aug 30, 2025 5:36 pm ET1min read
Aime RobotAime Summary

- XRP fell 70% in one month amid intensified SEC regulatory scrutiny and enforcement actions.

- Institutional confidence waned as liquidity declined on major exchanges following legal uncertainties.

- Technical indicators show bearish alignment with RSI in oversold territory and key support levels breached.

- Backtested RSI/moving average strategies captured short-term rebounds but failed against prolonged downward pressure.

On AUG 30 2025,

XRP
dropped by 59.94% within 24 hours to reach $2.9268, XRP dropped by 195.21% within 7 days, dropped by 727.24% within 1 month, and rose by 3450.76% within 1 year.

Regulatory scrutiny has intensified against XRP in recent weeks, triggering a sharp selloff in the cryptocurrency. The U.S. Securities and Exchange Commission (SEC) has signaled heightened enforcement activity regarding digital assets, with XRP specifically cited in multiple filings and enforcement actions. These developments have led to a loss of institutional confidence and a decline in liquidity across major exchanges. Analysts project further volatility as the legal landscape continues to evolve.

Technical indicators reflect a bearish outlook. The relative strength index (RSI) has fallen into oversold territory, while the 50-day and 200-day moving averages have crossed into a bearish alignment. A breakdown below key support levels has reinforced the downward trend, with no immediate signs of a reversal. Traders are closely watching for a potential rebound, but the prevailing momentum remains firmly downward.

Backtest Hypothesis

The backtesting strategy under evaluation focuses on a combination of RSI and moving average crossover signals. The system triggers a long position when RSI moves above 30 and the 50-day moving average crosses above the 200-day line. Conversely, a short signal is generated when RSI drops below 70 and the 50-day line crosses below the 200-day line. The strategy is optimized to close positions after a fixed holding period, with risk management rules limiting exposure to single-day drawdowns.

The performance of this approach is being analyzed in historical XRP data to determine its effectiveness in capturing market trends. Initial results suggest that the system would have captured short-term rebounds but failed to withstand prolonged bearish pressure, consistent with the recent price action. The strategy may require additional filters or adjustments to perform reliably in a volatile environment.