XRP News Today: XRP Price Drops 7% Amid Market Greed and Legal Uncertainty

XRP, the cryptocurrency associated with Ripple, has recently experienced a decline in price, retreating from its highs around the $2.320 zone. The price correction has led to a potential support level near the $2.120 zone, where bids might be found. This price movement has raised questions about the sustainability of the recent rally in XRP.

The decline in XRP's price comes amidst a broader market sentiment that has seen traders becoming increasingly greedy, as indicated by high funding rates among top cryptocurrencies. This greed is particularly evident in XRP and Ethereum, which have topped the funding rate charts. However, it is important to note that high funding rates do not necessarily indicate a sustainable rally, as they can also signal overleveraged positions that may lead to a correction.

The legal landscape surrounding XRP has also been a significant factor influencing its price. Ripple's appeal in the ongoing case with the Securities and Exchange Commission (SEC) has been withdrawn, but the case is far from over. The final settlement will depend on the SEC's response, and the outcome could have a substantial impact on XRP's price. The uncertainty surrounding the legal battle has contributed to the volatility in XRP's price, as investors remain cautious about the potential regulatory implications.

Despite the recent price decline, some analysts argue that investors should focus on quality assets like XRP and Cardano (ADA) instead of hoping for a broad rally. This perspective suggests that XRP's fundamentals remain strong, and the recent price correction could present a buying opportunity for long-term investors. However, it is essential to consider that this view is based on the analyst's forecast and may not necessarily reflect the actual market conditions.

XRP price failed to extend gains above the $2.320 resistance and started a fresh decline, like Bitcoin and Ethereum. The price declined below the $2.250 and $2.220 support levels. Besides, there was a break below a key bullish trend line with support at $2.20 on the hourly chart of the XRP/USD pair. The pair even spiked below the $2.150 level. A low was formed at $2.148 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $2.327 swing high to the $2.148 low.

The price is now trading below $2.220 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.20 level. The first major resistance is near the $2.220 level. The next resistance is $2.2380. It is close to the 50% Fib retracement level of the downward move from the $2.327 swing high to the $2.148 low. A clear move above the $2.2380 resistance might send the price toward the $2.2850 resistance. Any more gains might send the price toward the $2.30 resistance or even $2.320 in the near term. The next major hurdle for the bulls might be $2.40.

If XRP fails to clear the $2.220 resistance zone, it could start another decline. Initial support on the downside is near the $2.150 level. The next major support is near the $2.120 level. If there is a downside break and a close below the $2.120 level, the price might continue to decline toward the $2.050 support. The next major support sits near the $2.020 zone.

In conclusion, while XRP's recent price retreat has raised concerns about the sustainability of its rally, the cryptocurrency's fundamentals and potential legal developments continue to influence its price. Investors should remain vigilant and consider the broader market sentiment and regulatory environment when making investment decisions.