Is XRP Doomed? Ripple Ex-Director Reveals Key Bearish Factors

Published by

Mustafa Mulla

June 12, 2024

Are you ready for a bumpy ride with XRP?

Ripple’s token, XRP, has been on quite the adventure lately. Following a big crash in the overall market, especially with Bitcoin’s value dropping below $66,000, XRP took a hit too, losing about 5.3%. But it’s shown some resilience, climbing back up to around $0.48.

In the meantime, the Former Director at Ripple Sean McBride, sheds light on the reasons behind XRP’s lackluster performance. Could the ongoing SEC lawsuit be the key factor holding back XRP’s potential surge?

McBride’s Take: Why is XRP Struggling?

Sean McBride believes that the ongoing SEC vs. Ripple lawsuit is the primary factor preventing XRP’s price from rising. He believes that the final ruling by U.S. District Court Judge Analisa Torres is crucial for any significant price movement.

Until the lawsuit is resolved, McBride asserts that expecting substantial changes in XRP’s value is unrealistic. However, the favorable decision on the Ripple side will potentially enable U.S. institutions to start collaborating with Ripple, thereby boosting XRP’s price.

He believes that U.S. institutions are waiting for a clear legal outcome before fully engaging with Ripple and XRP.

XRP’s Stand in the Chaos

XRP’s stagnant performance has been a hot topic within the crypto community. While other cryptocurrencies experience bullish trends, XRP often remains unaffected.

Even during market corrections, XRP is not spared. Despite some positive news, such as Ripple securing over 30 Money Transmitter Licenses (MTLs) in the U.S., XRP’s price continues to struggle.

XRP Price Analysis

The recent drop in XRP’s relative strength index (RSI) to 32 indicates the cryptocurrency is nearing oversold territory. If the RSI falls below 30, it could signal a potential price reversal. Following Bitcoin’s crash, bearish sentiment has dominated the market, pushing XRP’s price down to $0.47.

If this trend continues, the price might drop further to $0.36, though there is key support around $0.42. On the flip side, if the bulls gain momentum, XRP could encounter resistance at $0.55. Surpassing this level might propel the price to $0.75.

Also Read: Ripple Pours Millions into XRP Ledger Growth in Japan and South Korea

Will the SEC lawsuit finally break or make XRP? Only time will tell. Stay tuned for updates!

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.