The asset returned to the $0.50 zone where it has sideways and bounced several times.
XRP could remain in this zone for some time, following historical patterns.
The price of XRP, the cryptocurrency issued by the Ripple company, has fallen more than 10% in the last 24 hours. With this movement, it returned to a key area for the market: 0.50 dollars (USD).
The fall occurred after the Securities and Exchange Commission (SEC), the US regulator, filed an appeal about the court decision in his lawsuit against Ripple. Federal Judge Analisa Torres ruled last year that his broadcaster’s sales of XRP did not violate the country’s securities laws.
In this way, as CriptoNoticias reported, the regulator resumed this judicial litigation that has been going on for almost four years, since it filed its lawsuit in December 2020. Since then, the SEC alleges that XRP is a security (security) and Ripple should have registered its sale, which is why it insists that its offer is allegedly illegal.
The price of the cryptocurrency has been affected since the beginning of this litigation, despite last year’s court ruling in favor of Ripple boosting the market. Its price is currently trading 86% below its all-time high recorded seven years ago in the 2018 bull cycle.
Anyway, Cryptocurrency May Not Decline From Around $0.50since this level has functioned as support in multiple declines this year. In fact, continuing with this pattern, it has bounced slightly from that level today, reaching USD 0.52 as of this writing. This can be seen in the following graph.
In fact, this price zone has acted as resistance for the past two years, as well as before the two previous bull cycles. Therefore, as shown below, It is a psychologically strong historical area that the market would seek to support unless the bad news continues.
In case it regains momentum in this area, the market’s next target could be the USD 0.65 area, its resistance of the last two months. But, faced with greater supply pressure, a return to the range between USD 0.38 and USD 0.43 is at stake, as these have been its minimums this year.
Geopolitical conflict affected the cryptocurrency market
The escalation of the war between Israel and Iran this week affected global financial markets, including bitcoin (BTC) and cryptocurrencies. Therefore, this situation has also discouraged demand in the XRP market, in addition to the SEC appeal.
Despite this, factors such as the US presidential elections scheduled for November could benefit the marketregardless of who wins. Candidate Donald Trump promises to boost the cryptocurrency industry and fire Gary Gensler, the chairman of the SEC, for slowing it down. Meanwhile, his opponent, Kamala Harris, has recently thrown her support behind the ecosystem, as long as investors are protected.
Consequently, with the change of government, a more flexible SEC is expected with the cryptocurrency market, which would be beneficial for XRP. There are also proposals on the table to launch exchange-traded funds (ETFs) of this digital currency.
Added to this is that recent interest rate cuts in the United States and China have increased liquidity in the economy. Therefore, the demand for risk assets could be reactivated, if the geopolitical conflict does not accentuate.
