When will the crash stop?

TL;DR

The price of XRP fell 24% on the week and 17% in 24 hours, with analysts still optimistic about a possible recovery. Speculation surrounding the resolution of the Ripple-SEC lawsuit may have been one of the reasons for pushing XRP to $0.66 last week, but the legal battle continues with no settlement yet.

What’s Next for XRP?

The past few days have been devastating for Ripple’s XRP, whose price plummeted 24% weekly and 17% on a 24-hour scale. It is currently worth around $0.44 (according to Coingecko data), the lowest level recorded in almost a month.

XRP Price, Source: CoinGecko

The poor performance of the asset coincides with a general decline in the market. Bitcoin (BTC) briefly dipped below $50,000 (for the first time since February), while Ethereum (ETH) fell 23% on the day and is now hovering around $2,200.

Despite the dire reality, some analysts remain optimistic that XRP could return to the green lane soon. User X CrediBULL Crypto depicted the range of $0.39 to $0.48 as an important “target zone”, after which the price of the token may head north.

Moon Lambo also chimed in, arguing that the substantial drop in XRP is “not the end of the world,” but “an opportunity.”

Another trader who gave his two cents was Cryptoinsightuk. The enthusiast described the decline as “a good first step” that generates interest and “sees a reactionary bounce.”

“I’d like to see us advance a little further on the box, I’ll look for a slowdown, a volume increase (crowding) and then bullish divergences before a next impulsive stage… If I’m right, of course. It may not be,” the analyst added.

What can fix the situation?

Less than a week ago, the price of XRP hit a four-month high of nearly $0.66 amid rising rumors that the lawsuit between Ripple and the US SEC is winding down. US Attorney Fred Rispoli previously predicted the case could conclude on July 31, while some industry participants speculated the regulator could discuss a possible settlement during its closed-door meeting last month.

However, the legal battle is still ongoing and there have been no announcements that a resolution is imminent.

According to some, Ripple has the upper hand after securing three vital (yet partial) court victories throughout 2023. The first came in July, when Judge Torres ruled that Ripple’s programmatic sales to secondary trading platforms do not constitute offers of investment contracts. This led to a massive bull run for XRP, whose price soared more than 70% in a matter of hours.

That said, a decisive victory for Ripple may be followed by another recovery for the coin.

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