Categories: Business

XRP drops by 11% despite the victory of the dry: what is going on?

  • Despite legal clarity, XRP faces the market with a drop in activity and price reductions.
  • XRP’s bearish momentum persists because a low purchase pressure and the drop in addresses indicate a prudent feeling.

Ripple may have won the battle of the courtroom, but XRP loses ground on the market. The dry abandoning its attraction should have changed the situation, cementing the non-security status of XRP.

Instead, active addresses fell by almost 70%, and the price of the token dropped 11% in just a week.

Maybe clarity does not always mean victory.

A legal victory with “ripple” effects

The American sec abandoned its appeal in the Ripple case, marking a pivotal moment for the cryptography industry.

After years of legal disappearance, the decision not to contest the 2023 decision by the American district judge Analisa Torres brings a long -awaited clarity to the regulatory status of XRP.

The decision confirmed that the programmatic sales of Ripple de XRP via secondary scholarships like Coinbase and Kraken have not violated the securities laws, although direct sales to institutional investors have been considered as titles violations, which cost Ripple $ 125 million.

Experts highlighted the importance of the SEC decision because the Ripple affair had progressed further than the other abandoned cases, such as those against Coinbase and Kraken.

With the legal installation of dust, the emphasis is now put to the possibility of an XRP ETF, with the optimism of the market increasing around potential approval in 2025.

But everything is not what it seems.

Drop activity, drop in price

Despite the legal victory, the performance of the XRP market tells another story. The data on the chain reveal a sharp drop in daily active addresses, which suggests that it is to remove user engagement.

Source: Santiment

Historically, a sharp decrease in active addresses is correlated with lower liquidity and a reduction in speculative interest, which can exacerbate the moment down.

Over the past two weeks, XRP has lost more than 11% of its value, has trouble finding support such as sales pressure media.

Source: CoinmarketCap

The drop in networks’ activity could indicate the customs clearance of investors, while traders turn their attention elsewhere.

Without renewed utility or fundamental catalyst, XRP may drop unless buyers return to the market in force.

XRP: Will the support draw?

The action of XRP prices remains down, the token trading at $ 2.18 at the time of the press after a brief rebound in relief. The RSI is 42.65, signaling a weak momentum and a place for further on before entering the territory of occurrence.

Meanwhile, the OBR was lower than the drop, suggesting a drop in purchase pressure.

Source: tradingView

The recent downward trend has seen XRP lose key support levels and without a strong reversal, other drops around $ 2.00 are possible. If the bulls regain control, resistance almost $ 2.30 could make a challenge.

A break above this level would be necessary for a change of trend. However, the declining OBV indicates that traders remain cautious.

If the sales pressure persists, XRP could release lower supports, potentially revisiting $ 1.90 in the coming days.

Next: Gold at Record Highs: a threat to Bitcoin or a chance to recover $ 100,000?

remon Buul

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