XRP Value Hits Three-Year Low Against Bitcoin Amid Ongoing Legal Battle with SEC
Summary:
XRP's value relative to Bitcoin has hit a three-year low, potentially signaling a buying opportunity. Despite bullish chart formations, XRP/USD has seen a downtrend since 2024, mainly attributed to Ripple's legal saga with the U.S. Securities and Exchange Commission. However, some analysts predict a new high for XRP by July. The asset's Relative Strength Index indicates neutral or fair market value. Yet, if the three-year downward trend continues, XRP value could regress to $0.31.
XRP's value against Bitcoin reached its lowest point in three years this week, implying a potential bottom and favorable purchase opportunity for XRP. As data from TradingView demonstrates, the value of XRP in comparison with Bitcoin declined to a point not seen since early April 2021. According to Tony Severino, founder of CoinChartist, this chart trend could signify the bottom of the XPR/BTC ratio. Despite positive chart patterns, XRP/USD has been on a downturn since the outset of 2024. A 14% plunge in XRP's price has occurred year-to-date, declining to a current $0.53 value, while BTC/USD experienced a sharp incline of 43%.
The weak performance of XRP can largely be credited to the current ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), states Iva Wisher, COO & Co-founder of Prom and former head analyst at 3commas. Wisher expresses that the legal dispute with the SEC creates uncertainty, causing investors to proceed with caution and reducing trading activity. The SEC's charges against Ripple in late 2020 were accusing the company of unlawfully garnering $1.3 billion through the sale of XRP in an unregistered securities offering. Recently, Ripple fought back against the SEC's plea for a $2 billion fine, arguing that a penalty of $10 million was more reasonable.
Despite the subpar market performance of XRP, certain analysts predict a resurgence to record highs by July. One such analyst, known as 'Charting Guy', proposes a potential $4.09 XRP value, assuming the current BTC value, and even indicates a $5.51 - $6.48 XRP rate, given his prediction of BTC reaching $85,000 - $100,000.
As it stands, XRP's relative strength index (RSI) currently registers at 50, insinuating a neutral or fair market value – a recovery from the low of 28 recorded on April 13 during the overselling of XRP. Still, XRP's price has been trending downwards consistently over three years, as weekly charts demonstrate. If this should continue, chart trends suggest a possible regression of XRP to the $0.31 mark, a significant support area in 2022 and 2023.
Note: This article is not meant to be investment advice or recommendations. All investment and trading activity involves risk, and readers should independently research before making any decisions.
Published At
5/7/2024 9:06:59 PM
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