XRP drops 11% despite SEC victory: What’s happening?
Perhaps the verdict did not have the intended effect.
- Despite legal clarity, XRP faces market struggles with falling activity and price declines.
- XRP’s bearish momentum persists, as weak buying pressure and declining addresses signal cautious sentiment.
Ripple may have won the courtroom battle, but XRP is losing ground in the market. The SEC dropping its appeal should have been a game-changer, cementing XRP’s non-security status.
Instead, active addresses have plummeted nearly 70%, and the token’s price has slumped 11% in just a week.
Maybe clarity doesn’t always mean victory.
A legal victory with “ripple” effects
The U.S. SEC has dropped its appeal in the Ripple case, marking a pivotal moment for the crypto industry.
After years of legal wrangling, the decision not to challenge the 2023 ruling by U.S. District Judge Analisa Torres brings long-awaited clarity to XRP’s regulatory status.
The ruling confirmed that Ripple’s programmatic sales of XRP via secondary exchanges like Coinbase and Kraken did not violate securities laws, though direct sales to institutional investors were deemed securities violations, costing Ripple $125 million.
Experts have emphasized the significance of the SEC’s decision, as the Ripple case had progressed further than other dropped cases, such as those against Coinbase and Kraken.
With the legal dust settling, the focus now shifts to the possibility of an XRP ETF, with market optimism growing around potential approval in 2025.
But all is not what it seems.
Falling activity, declining price
Despite the legal victory, XRP’s market performance tells a different story. On-chain data reveals a steep decline in daily active addresses, suggesting waning user engagement.
Historically, a sharp decrease in active addresses correlates with lower liquidity and reduced speculative interest, which can exacerbate downward momentum.
Over the past two weeks, XRP has lost over 11% of its value, struggling to find support as selling pressure mounts.
The drop in network activity could indicate fading investor confidence, as traders turn their attention elsewhere.
Without renewed utility or a fundamental catalyst, XRP risks further downside unless buyers return to the market in force.
XRP: Will support hold?
XRP’s price action remains bearish, with the token trading at $2.18 at press time after a brief relief bounce. The RSI sits at 42.65, signaling weak momentum and room for further downside before entering oversold territory.
Meanwhile, the OBV has been trending lower, suggesting declining buying pressure.
The recent downtrend has seen XRP lose key support levels, and without a strong reversal, further dips toward $2.00 are possible. If bulls regain control, resistance near $2.30 could pose a challenge.
A break above this level would be needed for a trend shift. However, the declining OBV indicates that traders remain cautious.
If selling pressure persists, XRP could retest lower supports, potentially revisiting $1.90 in the coming days.
