We all know XRP has a wide fanbase of investors and it’s certainly hard for any cryptocurrency, no matter how bad it is, to go to $0. In fact, even some fraudulent coins in the past managed to stay above $0 for a while. So, is this just another clickbait title? No.
We have recently found out that the SEC has sued Ripple and two executives for selling XRP, calling the digital asset a security. This is more than a simple lawsuit and many exchanges have already started delisting XRP.
This alone is enough evidence to suggest that XRP could potentially drop to near $0. In the end, if virtually all exchanges start delisting the digital asset, investors will not even be able to sell it. If XRP is deemed as a security, most exchanges will very likely delist it. XRP is already down by around 40% in the past 48 hours and struggles to find the bottom.
It’s hard to imagine that any large investor is currently interested in XRP as the future of the digital asset is certainly not known.
XRP Price Analysis: Technicals
It doesn’t take an expert to understand that XRP is not doing well right now. The entire rally that started on November 14 and lasted until November 24, has been wiped out in practically three days.
This is a massive blow to the recent weekly uptrend that bulls managed to establish. XRP was already one of the weakest cryptocurrencies since its all-time high above $3, trading sideways from December 2018 until November 2020.
XRP/USD weekly chart – TradingView
When it comes to significant support levels, there is one at around $0.22 followed by 0.17 and the low of March 2020 at $0.11.
However, it’s important to note that in times of high volatility and extreme fear, these levels will most likely not be very strong or act as they normally would.
It’s important to note that Ripple and XRP may actually come out on top after the lawsuit is settled. However, we know these things can take quite a long time to end, which is extremely detrimental to XRP’s price in the short and long run. Even if Ripple does win, the price of XRP could be completely destroyed by then.
