After failing to defend the support level of around 62 cents last month, Ripple Labs-backed XRP price has suffered immense bearish pressure in the past few days. The large-cap altcoin, with a fully diluted valuation (FDV) of about $52 billion, attempted to rally above the resistance level of around 58 cents on Monday in vain.
The ongoing downward trend suggests XRP might dip below the 50 cents mark soon, signaling more challenges ahead. Adding to the concern, XRP has consistently closed below its crucial weekly support level for the past five weeks.
To reverse its fortunes and avoid being labeled a “zombie coin,” XRP needs to consistently maintain closures above the weekly 50 Moving Average (MA). Failure could see the coin plunging towards the 42 cents support level in the coming weeks if the bullish momentum fizzles out.
As an obvious point, Ripple must win its case against the United States Securities and Exchange Commission (SEC).
On Tuesday, the US SEC filed its remedies reply brief and supporting exhibits under seal. Additionally, Ripple filed its redacted remedies, reply brief, and supporting exhibits on entry to final judgment.
Ripple Labs has vigorously defended XRP in the courts of law against the SEC’s regulation by enforcement. With the US Congress attempting to create clear crypto and stablecoins regulations, XRPL developers are optimistic about a better future.
In an effort to strengthen its position, Ripple recently introduced XRPL’s automated market maker (AMM) and plans to launch fiat-backed stablecoins later this year. However, Ripple must also ensure XRPL evolves into a pivotal Web3 hub, similar to Solana (SOL) and Ethereum (ETH), to avoid fading into obscurity amidst the growing popularity of meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB).
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