After reaching a peak of over $0.84 in 2023 following Ripple’s partial legal win against the US Securities and Exchange Commission (SEC), the price of XRP has experienced a significant correction.
The cryptocurrency market was closely monitoring the outcome of the legal battle, and while the victory provided a boost initially, recent market dynamics have led to a notable retracement in XRP’s price, which is down more than 20% from its recent high.
In the continuation of this broader downtrend, the price of XRP witnessed another major decline on August 3, plummeting by nearly 5% over the past 24 hours.
The steep drop erased roughly $1.6 billion from the crypto token’s market cap, bringing it down from $36.67 billion to $35.08 billion. The market cap decline amounted to $2 billion at one point, before recovering around $0.4 billion.
XRP price analysis
At the time of writing, XRP was trading at $0.66, down around 4.8% on the day.
The altcoin lost more than 7.7% over the past week, significantly reducing its monthly gains which currently stand at about 35%.
The crypto asset has now pared about 60% of the gains associated with the SEC lawsuit. As a result, the XRP/USD pair is now testing the 61.8% Fibonacci retracement support near $0.65.
If the token closes below $0.703 this week, it would mark the third consecutive weekly loss for the XRP despite the positive news in recent weeks.
If the $0.65 support is broken, there is a decent chance of another downward push toward the $0.57-$0.58 zone which hosts several important support levels, including the 100-weekly moving average (WMA) and important horizontal support that acted decisively in the past.
With the SEC lawsuit against Ripple still unresolved, the recent price correction in XRP should not catch investors off guard.
Despite the initial boost from the legal victory, the ongoing uncertainty has led to a natural inclination among XRP investors to mitigate potential risks, prompting some to exit their positions to protect themselves from further downside.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
