Upon reaching the $0.56 threshold on October 17, the XRP token has been experiencing a negative price outlook. As a result, the cryptocurrency retested the $0.51 mark, an area last seen on October 3. This zone, however, has acted as a solid support for the altcoin, resulting in a bounce back toward the $0.5305 level as of press time.
This marks a modest 0.52% uptick compared to the previous day’s price. This volatility in the altcoin’s market is primarily attributed to the ongoing legal battle between Ripple and the SEC, which has fueled speculation and tension among investors.
Ripple Co-Founder Fails to Meet Critical Court Deadline
Ripple co-founder Chris Larsen recently missed a critical deadline to file a notice of appearance, a legal necessity in the ongoing Ripple-SEC case. In response, attorney Mark Faguel, an expert in SEC enforcement, warned on X that if Larsen’s legal team fails to submit the required paperwork by the looming November 5 deadline, they risk losing the opportunity to present oral arguments.
NOTE: This has nothing to do with the SEC, or any supposedly late filing (which wasn’t late). This is directed at Larsen, who has not yet filed his appearance in this case.
— Marc Fagel (@Marc_Fagel) October 22, 2024
This misstep could weaken Larsen’s defense strategy in the case. However, this development doesn’t affect Ripple’s overall standing in the lawsuit. Ripple’s Chief Legal Officer, Stuart Alderoty, quickly reassured anxious XRP holders, confirming that Ripple will meet its October 25, 2024 deadline to file its pre-argument brief.
The firm plans to challenge the SEC’s legal stance on Judge Analisa Torres’ ruling regarding XRP’s institutional sales. Once Ripple’s filing is complete, the timeline for appeal briefs will be set, and the SEC will likely have up to 90 days to respond. This process could drag the case well into mid-2025, extending what has already been a lengthy legal battle.
XRP’s On-Chain Data Hint at Bearish Sentiment
XRP’s on-chain data, on the other hand, hints at a bearish outlook in the short term, with decreased wallet activity and a decline in transactions. According to XRPScan metrics, the token has witnessed the number of new accounts created decreasing from a peak of 3,707 accounts on October 20 to a low of 1,306 at press time.
This adverse price action is further bolstered by the fact that the number of transactions on the XRP ledger has also been in a downtrend from a high of 1.704 million transaction count to a low of 712.468K today. This indicates a lack of interest or activity in the token, as the market is full of tension and uncertainty surrounding regulatory issues.
XRP’s Market Outlook: What’s Next?
As observed on TradingView’s daily chart, the cryptocurrency is rebounding from yesterday’s low of $0.51. The relative strength index cements this scenario as it points upwards, implying a bullish sentiment building up in the near term. Positioned at 41.85, the indicator signals ample space for the optimistic price action to persist in the coming days.
Such a scenario may push the token to challenge the 23.6% Fibonacci level at $0.5410, with the likelihood of breaking above it. The success of this move largely depends on the cryptocurrency closing above the 200-day simple moving average at the $0.5386 threshold.
This could further propel the altcoin to higher levels around $0.5629, aligning with the 38.2% Fibonacci mark, where it could encounter resistance. Conversely, a shift in market sentiment might pull the XRP token to revisit its $0.51 low again, possibly breaking below it this time round.
