Today, while most cryptocurrencies are experiencing price gains, XRP is facing a decline. Despite Bitcoin's impressive surge to 3 month high of $67,693, XRP struggles to hold above the $0.54 level. This decline is particularly surprising given the major announcement about the upcoming Ripple Swell event. So, let's explore the reasons behind XRP's downturn.
Ripple vs. SEC Case Creates Uncertainty
A significant factor impacting XRP's price is the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC recently overturned the previous ruling that says XRP is a non-security. This decision has generated fear, uncertainty, and doubt (FUD) among investors, causing XRP's price to drop to new lows.
With December 19, 2024, marking five years since the lawsuit began, the outcome could greatly influence XRP's future.
Selling Pressure Blocks XRP Growth
XRP had managed to climb towards the $0.54 mark, with hopes of reaching $0.65. However, selling pressure has blocked this upward movement. Sellers have historically resisted price increases, as seen between late May and early July. Without a notable increase in buying interest, XRP may continue to struggle to reclaim higher price levels.
Declining Market Sentiment
Another worrying sign for XRP is the significant drop in its Weighted Sentiment. This metric gauges the overall mood of discussions surrounding a cryptocurrency. A decrease from 0.07 to 0.02 suggests a rise in pessimism among the community. While negative sentiment can sometimes lead to bullish behavior, the current outlook is still concerning.
Bearish Short-Term Indicators
The 12-hour chart reveals a bearish trend for XRP. The price has dipped below the $0.55 resistance level and is positioned within a descending channel. This movement indicates that further declines may be imminent, especially with the Relative Strength Index (RSI) below 50 and the Moving Average Convergence Divergence (MACD) below zero.
Swell Events To Bring Hope For XRP
Despite these challenges, there is hope as Ripple prepares for its annual Swell conference. This event gathers industry leaders to discuss innovations in payments and blockchain technology.
Historically, Swell has led to significant price increases for XRP, and many are optimistic that this year's event could reignite interest and investment in the cryptocurrency.