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The post XRP Price Crash 2024: How Whales and SEC Appeal Impact the Market appeared first on Coinpedia Fintech News
The XRP price crash has witnessed a massive fall of at least 9.9% this week. On September 30, the price was nearly $0.6412. In just under four days, it slipped to a low of $0.5118. It seems that the unwelcome move by the US SEC to appeal against a federal court ruling favoring XRP’s claim that it is not a security, and the unexpected escalation of the Israel-Iran conflict to an unprecedented level, have had a huge impact not only on the XRP market but also on the entire cryptocurrency market.
Notably, top cryptos like Bitcoin, Ethereum, BNB, and Solana have also experienced a similar drop during the period. The prevailing fear in the market right now is whether the price will slip further. Let’s analyze various factors to evaluate the possibilities! Ready?
Whales Offload XRP to Exchanges
Binance’s XRP reserve recently increased by 135 million XRP. A rise in the exchange reserve of a cryptocurrency generally happens when investors unload their holdings onto the exchange, fearing further price drops. In that sense, XRP investors anticipate the possibility of a market decline. Not only Binance, but Bitso and Bitstamp have also confronted similar situations lately. The overall picture this gives is that the XRP price crash has pushed the market into a bearish zone.
Why This Sudden Fall in the XRP Price?
As mentioned in the introduction, right now, we can only point to two incidents to blame for the XRP price crash. The primary one is the recent decision of the United States Securities and Exchanges Commission to appeal against a federal court verdict, which declined to accept the regulator’s argument that XRP is a security. Earlier, many experts predicted that if the US SEC chose to appeal the federal court ruling favoring XRP, it would trigger a huge impact in the XRP market. For that reason, for the market, the decline was not a surprise.
But what made things worse is the second incident. It acted as a catalyst to pull the market downward. Not many expected that all of a sudden, the Israel-Iran crisis would escalate to a disastrous level. It crushed the final hope of the market recovering from the damage caused by the SEC’s action.
XRP Market Landscape: Simple Price & Technical Analysis
As said earlier, the XRP price crash has led to a severe fall in the last seven days. At the start of this month, it was around $0.6110. It slid to a monthly low of $0.5218 on October 3. Currently, the market is struggling to break above the opening price of October 3 of $0.5387.
The 200-day Simple Moving Average of XRP is 0.5455 – significantly higher than the current XRP price of $0.5310. The XRP Long/Short chart shows a bearish trend, as the ratio stands at 0.94 – clearly within a bearish zone. Open interest in XRP futures has dropped by at least 2.3%.
In conclusion, all the available factors point to the possibility of the XRP price crash continuing. It is important to closely watch the next developments in order to determine whether it is a temporary fall. The recent prediction, using the price momentum pattern, that the price is likely to fall to a low of $0.48, is really worrisome.
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