XRP price has been under intense pressure for the past few weeks, moving in tandem with the general crypto market movements. The asset has crashed by more than 20% in the month to date and 7% in the past week. XRP’s total market cap has plunged to $26 billion over the past few weeks, with the total volume of the asset traded over the last day down by 11%.
XRP price has posted significant losses over the past few weeks amid the bearish crypto market sentiment and regulatory concerns in the sector. The global crypto market cap has been under immense pressure over the past few weeks, with the overall crypto market cap inching lower to $1.04 trillion. The premier cryptocurrency, Bitcoin, has been struggling below the crucial level of $26,000 over the past few days, weakening the crypto market outlook.
Major altcoins, including Ethereum, Solana, Dogecoin, and Cardano, among others, have also succumbed to the general market outlook, dipping by more than 3% each. The Crypto Fear and Greed Index, which measures the key emotions driving the crypto market, is currently at a fear level of 35, pointing to an increase in selling pressure.
The legal battle between the US Securities and Exchange Commission (SEC) and Ripple Labs has also been weighing on the XRP price. The XRP price jumped by more than 70% in July after a federal judge ruled that XRP was only considered a security when solely sold to institutional investors. Even so, the rally was short-lived after SEC initiated a motion to file for interlocutory appeal concerning programmatic and other sales of XRP. In the filing, the Wall Street regulator stated that it did not seek a review of XRP and called it “nothing but a computer code with no inherent value”.
Notably, UK regulators have stressed that cryptocurrencies lack intrinsic value. According to crypto observers, the SEC is trying to convince judges that cryptocurrencies are not commodities. Ripple CEO Brad Garlinghouse said that Ripple is living in purgatory. The lawsuit and the SEC’s efforts to bring enforcement upon Ripple and XRP have buoyed the asset’s lackluster performance.
XRP Price Technical Analysis
The daily chart shows that the XRP price has been moving sideways over the past few weeks, struggling to hold above the crucial level of $0.500. The digital currency remains below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index inched lower to 34, indicating an increase in selling pressure.
As such, the XRP price is likely to continue trading sideways in the ensuing sessions as it struggles to find direction. A move below the important level of $0.500 might pave the way for further losses to the next support at $0.4545. On the flipside, a flip above the major hurdle at the 200-day EMA at $0.5290 might give bulls momentum to push the price higher to the 50-day EMA.