XRP News Today: XRP Plummets 50% Amid SEC Legal Battle and Market Volatility

XRP, the cryptocurrency developed by Ripple Labs, is currently facing significant challenges in its attempt to regain its previous highs. As of March 4, XRP has experienced a notable decline, erasing all of its recent gains and falling back under pressure. This reversal in the crypto market has raised concerns among investors and analysts alike, as the digital asset struggles to maintain its momentum.

The recent downturn in XRP's price can be attributed to several factors. One of the primary reasons is the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC has accused Ripple of conducting an unregistered securities offering through the sale of XRP, which has cast a shadow over the cryptocurrency's future. The legal uncertainty has led to a decrease in investor confidence, resulting in a sell-off of XRP.

Additionally, the broader crypto market has been experiencing volatility, with many digital assets facing similar challenges. The overall market sentiment has been bearish, and investors have been cautious about investing in cryptocurrencies. This has further contributed to the decline in XRP's price, as investors have been reluctant to take on additional risk.

XRP is showing no signs of a meaningful recovery as it remains trapped beneath key resistance levels. Despite short-lived optimism in the market, technical indicators continue to suggest that a return to the $3 mark is increasingly unlikely. XRP has been unable to break above its 50, 100, and 200 exponential moving averages. These moving averages sit very closely at the top and are now a thick roof under which price has been moving in a tamed state over weeks. This has led to a deepened squeeze and a major reduction in XRP’s trading window.

The squeeze has pushed volume down dramatically, and candles depict little price movement on a daily basis. Market volatility has also reached its lowest level in several months, which adds to the absence of momentum on all fronts. Meanwhile, the Relative Strength Index remains at 45, indicating that neither the bulls nor the bears are really convinced.

This compressed volatility phase is often seen before breakouts, but current conditions offer little evidence of bullish strength. With speculative interest in altcoins fading, XRP has not attracted the level of liquidity needed to stage a strong recovery. Any breakout attempt under such weak volume conditions would likely fizzle quickly without sustained buyer activity.

The market is presently undecided, and as the interest diminishes, XRP has become a victim. Even the weakest rallies seem to encounter opposition almost instantaneously, as the price does not gain traction against major moving averages. In the past, XRP needed a volume and liquidity explosion to break out, but both conditions remained unfulfilled.

XRP continues to hover below critical resistance levels, with no surge in buying power in sight. Until the trading volume rises and the price action clears above technical ceilings, the $3 target looks far and unrealistic.

Despite the challenges, some analysts remain optimistic about XRP's long-term prospects. According to the analyst's forecast, XRP has the potential to rebound and reach new highs in the future. However, this will depend on several factors, including the outcome of the legal battle with the SEC and the overall market sentiment.