Having reached the $0.56 threshold on October 17, the XRP token has a negative price outlook. As a result, the cryptocurrency retested $0.51, an area last seen on October 3. However, this zone provided strong support for the altcoin, leading to a rebound towards the $0.5305 level at press time.
This represents a modest increase of 0.52% from the previous day’s price. This volatility in the altcoin market is primarily due to the ongoing legal battle between Ripple and the SEC, which is fueling speculation and tension among investors.
Ripple co-founder failed to meet deadlines for critical trial
Ripple co-founder Chris Larsen recently missed a critical deadline to file a notice to appear, a legal requirement in the ongoing Ripple-SEC case. In response, attorney Mark Fagel, an SEC enforcement expert, warned on X that if Larsen’s legal team does not file the required documents by the looming Nov. 5 deadline, they risk losing the opportunity to present oral arguments.
NOTE. This has nothing to do with the SEC or any allegedly late filing (which was not late). This is directed at Larsen, who has not yet entered an appearance in the case.
— Marc Fagel (@Marc_Fagel) October 22, 2024
The error could weaken Larsen’s defense strategy in the case. However, this event does not affect Ripple’s overall position in the lawsuit. Stuart Alderothy, Ripple’s general counsel, quickly reassured worried XRP holders by confirming that Ripple will meet the October 25, 2024 deadline to file the preliminary brief.
The firm plans to challenge the SEC’s legal position on Judge Analisa Torres’ ruling regarding institutional sales of XRP. Once Ripple completes the application, there will be time limits for appeals, and the SEC will likely have up to 90 days to respond. The process could drag out the case until mid-2025, prolonging an already lengthy legal battle.
XRP Chain Data Hints at Bearish Sentiment
On the other hand, data on the XRP chain hints at a bearish outlook in the short term due to lower wallet activity and fewer transactions. According to XRPScan metrics, the number of new accounts created on the token has dropped from a peak of 3,707 accounts on October 20 to a low of 1,306 at the time of publication.
This unfavorable price movement is further amplified by the fact that the number of transactions on the XRP ledger is also trending downward from a high of 1.704 million transactions to a low of 712.468 thousand today. This indicates a lack of interest or activity in the token as the market is filled with tension and uncertainty regarding regulatory issues.
XRP Market Outlook: What’s Next?
As seen on TradingView’s daily chart, the cryptocurrency is recovering from yesterday’s low of $0.51. The Relative Strength Index anchors this scenario as it points upward, implying an increase in bullish sentiment in the near future. The indicator located at 41.85 signals that there is enough room for the bullish price action to continue in the coming days.
Such a scenario could push the token to break above the 23.6% Fibonacci level at $0.5410, with a breakout above it likely. The success of this move largely depends on the cryptocurrency closing above the 200-day simple moving average at $0.5386.
This could further push the altcoin higher towards $0.5629, which is the 38.2% Fibonacci retracement where it could face resistance. Conversely, a change in market sentiment could see the XRP token reach the $0.51 low again, possibly breaking below it this time.
