After 3 straight years of consolidation, the XRP price is finally breaking out of this pattern but in a bearish direction.
The price of XRP has been a major source of concern for industry observers within the community. While XRP was well impacted by the past crypto winter, when the market recovered, it lagged behind its peers.
At the time of writing, XRP is changing hands for $0.4957 after dropping by 1.97% in the past 24 hours. The coin’s market capitalization is also down by 1.9% to $26,983,201,666 while the trading volume has dropped 25% to $1,341,640,837.
The XRP Growth Reversal
According to crypto analyst Crypto Rover, XRP is definitively breaking down its 3-year consolidation pattern. He shared a chart that shows the price dropping from a high of $1.95 in early April 2021 to the level it is now.
— Crypto Rover (@rovercrc) January 31, 2024
Notably, XRP has already been embroiled in the lawsuit between Ripple Labs Inc. and the United States Securities and Exchange Commission (SEC) over its status as an investment contract.
The lawsuit, which began in December 2020, had entered the court hearing session by April 2021, with the uncertainty at the time dragging down the crypto asset’s price.
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The drawdown continued even after Judge Analisa Torres’ Court ruling vindicated XRP in July last year. Rather than print a bullish recovery, the chart from Crypto Rover shows that XRP is carving another bearish path, one that might imply a drop to levels not seen in months.
Per previous charts from Crypto Rover, XRP has flirted with the $0.6 level for so long with the impact of bears now tilting the market downward.
The Ultimate XRP Catalyst
With the major victory scored when Judge Torres declared it a non-security last year not enough to push it to new heights, XRP now obviously needs another major catalyst to power its next major rally.
The potential for spot XRP Exchange Traded Fund (ETF) product is considered the most feasible growth boost that might impact the coin for good in the long term.
While the likelihood of approving the product is still in its speculative stages, its emergence can change crucial market dynamics and shift the liquidity dominance from Ripple Labs to other institutional players as well.