After a Promising Breakout Attempt, Discover Why XRP Plunged 15% Today
The price of XRP experienced a significant decline today, dropping by more than 15% following a recent attempt at a breakout. This sudden decrease has prompted discussions within the digital asset space, particularly in light of the broader downward momentum observed in the cryptocurrency market. Previously, the market had been anticipating a potential rally in October, but the current trend suggests otherwise, leading to speculation within the sector.
Slump in XRP Price
Several factors may have contributed to the recent slump in XRP’s price. The ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC) has been closely monitored within the crypto industry. Notably, the SEC has filed a Notice of Appeal challenging certain aspects of a recent ruling by Judge Torres, dampening market sentiment and indicating a further extension of the legal battle. This uncertainty has likely led investors to adopt a cautious stance, awaiting greater clarity on the outcome of the Ripple-SEC dispute.
Furthermore, the broader crypto market has experienced a downturn, with the global crypto market cap declining by nearly 4% as major cryptocurrencies such as Bitcoin, Ethereum, and Solana also saw declines. This market selloff may be attributed to various factors, including recent Bitcoin ETF outflows and macroeconomic concerns such as indications of economic contraction in the US and uncertainty surrounding the Federal Reserve’s monetary policy decisions.
Market Trends and Performance
As a result of these developments, the price of XRP has fallen by over 15% to $0.5106, accompanied by a 16% surge in trading volume to $3.21 billion. Despite recent speculation about a potential rally and optimistic price projections from market analysts, the appeal filed by the SEC has led to a decrease in open interest in XRP futures, indicating a decline in market interest in the crypto. It is apparent that market participants are awaiting further clarity on the legal proceedings before committing to the cryptocurrency.
Read Also: XRP’s Path to $6 Unhindered by SEC Appeal: Discover Why
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