XRP News Today: XRP Tests Critical Support Zone Amid Legal Uncertainty

Cryptocurrency analysis firm MakroVision has released its updated technical assessment of XRP, explaining that XRP is currently testing a vital support zone and that this level will be decisive for the price direction. According to MakroVision, XRP’s price structure is still in a downward trend. The analysis states that the downtrend shown by the red line remains valid, while the recent price action has reinforced this trend with lower highs and lows. In particular, the break of the support line at $2.03 has brought XRP to a critical threshold.

XRP is currently in the “Golden Pocket” area (Fibonacci 0.618–0.665 range), which is considered important in technical analysis. This area covers the $1.95–2.03 band. According to the analysis, although this area is trying to stabilize the price for now, a strong buying reaction has not yet been observed. It is stated that if this level is broken, weaker supports will come into play and this could mean a bearish breakout.

MakroVision outlined two possible scenarios for XRP as follows: If there is an upward reaction, the price could rise above $2.13 again, the first target would be the liquidity zone at $2.23 and then the recent low peaks at $2.35. If the selling pressure continues, XRP could retreat to the $1.55–$1.40 band, in which case the broad bull formation could be disrupted.

XRP, the cryptocurrency associated with Ripple, has been experiencing recent declines, prompting analysts to outline two potential scenarios for its future trajectory. According to MakroVision, if there is an upward reaction, the price of XRP could potentially rise above $2.13. This optimistic outlook suggests that despite current challenges, there is still potential for significant gains. However, the analysts also warn of a possible 41% plunge to $1.18 if a descending triangle pattern is confirmed on the charts. This bearish scenario highlights the volatility and uncertainty surrounding XRP's price movements.

The legal landscape surrounding XRP adds another layer of complexity to its future prospects. Speculation that the US may seize Ripple's escrowed XRP for national reserves has led to a drop in its value. This legal uncertainty deepens as XRP awaits a ruling from Judge Torres, which could significantly impact its market dynamics. Legal analysts believe that a favorable ruling could allow Ripple to withdraw its cross-appeal, potentially leading to a more stable regulatory environment for XRP. However, the SEC's pursuit of the programmatic sales of XRP remains a contentious issue, further complicating the cryptocurrency's future.

The recent price drop of Bitcoin has also drawn attention to XRP as an asset with potential for a reversal. Many analysts highlight XRP as one of the cryptocurrencies that could experience a rebound following Bitcoin's decline. This shift in focus underscores the interconnected nature of the cryptocurrency market and the potential for XRP to benefit from broader market trends. However, XRP remains locked below $2.18, a key resistance level, indicating a lack of clear directional momentum. Weak bullish candles and fading volume further emphasize the challenges XRP faces in establishing a strong upward trend.

In August 2024, a judge ruled that XRP might only be considered a security in specific circumstances, such as when it is issued to institutions, but not when it is traded on exchanges. This ruling provides some clarity on the regulatory status of XRP but also introduces new complexities. The legal and regulatory environment surrounding XRP continues to evolve, with potential implications for its future price movements and market dynamics. As the cryptocurrency market navigates these uncertainties, XRP's trajectory will likely be influenced by a combination of technical factors, legal developments, and broader market trends.