With the SEC‘s appeal also receiving a negative response, the XRP Coin community no longer expects a parabolic rally to begin. However, macro-level negative developments are causing the XRP Coin price, which should be targeting $1, to struggle in the support zone.
Under normal conditions, with the rejection of the SEC’s appeal, the XRP Coin price should have aimed for $1 again. Because the reason for the decline (SEC statements/moves) that occurred after the summary judgment on July 13th disappeared.
However, the data requiring Fed tightening, geopolitical risks, and many other conditions are not the same as in July. Therefore, the XRP Coin price is below the level it should be.
However, we should note that XRP Coin sales on exchanges cannot be considered as investment contracts until the end of the lawsuit in 2024. This is important for price increases in the long term. If the SEC appeals (which it will), this period may be extended until 2026 and 2027.
Now that we have taken our daily dose of Ripple lawsuit news, let’s return to the price chart. The evaluation on the weekly chart shows how critical the $0.53 level is. The level, which could not be surpassed with unsuccessful attempts, caused the price to drop again. The RSI indicates that the decline may continue.
What is currently influencing the XRP Coin price is the movement of BTC and the strong correlation. More importantly, the RSI has deviated from a support trend line that has been rising since July. This means there is a significant weakness in investor demand.
Furthermore, the transfer of $15 million worth of XRP Coin to Bitstamp supports short-term concerns. If the downward movement continues, XRP could drop by another 20%, and the $0.4 support level appears to be an ideal resting point. However, if the weekly closing is above the critical $0.53 level, things will change.
With the support of a positive weekly closing, bulls can invalidate the trend breakout by pushing the RSI upwards again. In this case, the target would be a 55% increase to $0.75.
However, for this to happen, BTC must not close below the $26,800 support level on a daily basis. It did so today, and if BTC negativity continues in the coming days, XRP’s positive divergence appears difficult.