XRP Price Slips 15%: Ripple Revisits Key Support Amid SEC Tension

Key Takeaways

• Ripple’s (XRP) price has dropped 15% since July 18.
• The SEC recently canceled an important meeting with Ripple.
• The long-standing legal battle between Ripple and the SEC has affected XRP’s market performance.

XRP saw a 15% drop in price since July 18, revisiting critical support levels amid heightened tensions with the United States Securities and Exchange Commission (SEC). The decline followed the abrupt cancellation  of a scheduled private meeting between Ripple and the SEC, which investors had high hopes for. This cancellation has raised concerns about the ongoing legal battle’s impact on XRP‘s market performance.

The SEC’s lawsuit against Ripple, which centers around classifying XRP as a security, has been a significant cause of XRP’s volatility. Despite some positive developments in Ripple’s case, the uncertainty surrounding the outcome continues to affect investor sentiment and XRP’s price stability. 

Is SEC Making A Settlement with Ripple?

The SEC canceled a private meeting scheduled for July 18 with Ripple. Since no reason was provided for this cancellation, it sparked speculation within the cryptocurrency community. The meeting’s agenda included administrative proceedings, settlements, and litigation claims.

Some observers believe the stalled negotiations indicate deeper issues or disagreements that have yet to be resolved. Others suggest that the cancellation could point to behind-the-scenes maneuvers or strategic shifts by either the SEC or Ripple.

XRP Price Analysis 

On July 5, Ripple’s price fell to a low of $0.38, its lowest point since March. A recovery followed, with XRP gaining 67.5% until it hit a high of $0.63 on July 17. However, it wasn’t long until it fell 15%. At the time of writing, XRP traded hands for $0.54.

Since mid-July last year, Ripple’s price has been on a steady decline from its peak of $0.93. Recently, the price hit a low that tested its support level, while Wednesday’s high encountered resistance.

Despite being in a downtrend since mid-July last year, Ripple’s recent price action shows promising signs of a potential trend reversal. However, the recent rejection at the descending resistance level indicates the need for further confirmation.

A critical signal for a sustained uptrend would be the formation of a higher low, with XRP finding support above the 0.618 Fibonacci retracement level at $0.48. If this scenario plays out, we could anticipate a breakout above the current resistance, potentially driving XRP to a high of $0.94.

However, if the downtrend continues and XRP falls below $0.48, it could face further downside pressure, targeting the next horizontal support at $0.35.