XRP Faces 40% Drop Risk Amid SEC Lawsuit Pause

XRP, the cryptocurrency developed by Ripple Labs, is at a critical juncture as it faces a mix of regulatory challenges and market dynamics. The token's price is currently at a crucial support level, with investors and analysts closely monitoring its movements. The number of XRP holders has surged to an impressive 6.26 million, indicating a growing interest and confidence in the token despite the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).

The SEC vs. Ripple lawsuit has been a significant factor influencing XRP's market trajectory. Recently, both parties filed a joint motion to pause the ongoing appeal, a move that has been interpreted as a potential step towards a broader resolution. This pause could pave the way for regulatory clarity and market-friendly outcomes, including the possibility of a spot XRP ETF. The legal developments have added fuel to bullish expectations, with some analysts predicting that XRP could surpass $2.12 if the current support level holds.

However, the market remains divided between optimism and caution. While the growing number of holders and the potential for regulatory clarity are positive signs, the token's price is still under pressure. Technical analysis suggests that if XRP fails to maintain its current support level, it could face a significant price drop. Analysts have warned of a potential 40% decline, contrasting sharply with optimistic projections that see the token reaching $22 or even $30 in the long term.

The recent trading day of April 10th saw continued bearish pressure, with sellers dominating early market activity. The price found support at $1.9709 but struggled to gain momentum, moving sideways within a moderate range. Renewed selling pressure later in the day caused XRP to break below support, dipping to $1.9221. However, this level attracted buyers, and a golden cross on the MACD line signaled a bullish reversal, triggering a wave of buying activity that lifted the price steadily.

As the market awaits a decisive move, the coming days will be crucial in determining whether XRP can hold its current support level or face a potential correction. The outcome will have significant implications for the token's future trajectory, with investors closely watching for any developments in the SEC lawsuit and the possibility of a spot XRP ETF. The situation remains tense, but the growing interest and potential regulatory clarity offer a glimmer of hope for XRP's bullish prospects.