XRP prices fell towards their support level of 44 cents after attempting to break through the resistance level of 56 cents. The drop in XRP prices is mainly due to the current downturn in the cryptocurrency market caused by Bitcoin’s fall below its psychological support level of $30,000. Will XRP price recover? Or will XRP crash to 30 cents? Let’s analyze in this Ripple price prediction article.
Why did XRP price crash?
Recently, XRP prices have experienced a considerable setback, and the coin has fallen towards its support price of 46 cents. This downward trend comes after XRP made an effort to break through the price of 56 cents. However, the coin’s attempt was unsuccessful, and it subsequently fell towards its current support price.
The primary reason behind this drop in XRP prices is the falling crypto market. The cryptocurrency market experienced a significant decline, with Bitcoin breaching its psychological support level of $30,000 lower. Bitcoin’s downward trend has had a cascading effect on other cryptocurrencies, including XRP. As a result, XRP prices fell drastically, making it difficult for the coin to break through its resistance level.
Ripple Price Prediction: Will XRP Price Recover?
As XRP prices crashed towards the support of $0.44, we can naturally see how prices started to rebound higher. We expect XRP prices to continue to recover to reach the resistance price area of $0.50. From there, there will be 2 case scenarios depending on how the crypto market is performing:
- If the crypto market is green: XRP should breach the 50 cents price mark higher, consolidate briefly before continuing towards the second resistance price of $0.54.
- If the crypto market is red: XRP should go back down towards $0.44 and even breach this price are lower, going to the next support price area of $0.415
Ripple SEC Update as of April 22, 2023
John E. Deaton, a lawyer representing over 76,000 XRP token holders in an ongoing lawsuit, recently shared a video from 2018 featuring US investor Tim Draper. The video shows Draper discussing with Gary Gensler (who was not yet SEC chairman at the time) how banks were concerned about the crypto market and that they were taking legal action, applying media pressure, and influencing financial regulators to hinder its growth.
According to a report by FinBold, the legal team representing the SEC had previously filed a letter of supplemental authority in support of its summary judgment motion. It referenced a Massachusetts court ruling that denied the defendant’s argument of ‘fair notice’. It also supported the regulator in a securities fraud case. In response, Ripple’s lawyer, Michael K. Kellogg, argued that the referenced case was an unpublished district court opinion that was not relevant to Ripple’s case. Kellogg claimed that Ripple had sufficient evidence to demonstrate that reasonable market participants believed that XRP sales were not investment contracts and had informed the SEC of this belief.