XRP Price Approaches Final Crossroads After Multi-Year Consolidation

XRP Price Approaches Final Crossroads After Multi-Year Consolidation

Originally published on Coinpedia Fintech News

After failing to maintain the support level of approximately 62 cents last month, Ripple Labs-backed XRP has faced significant bearish pressure in recent days. The large-cap altcoin, with a fully diluted valuation (FDV) of around $52 billion, unsuccessfully attempted to rally above the resistance level of 58 cents on Monday.

Consequently, it is reasonable to anticipate a decline in XRP's price, potentially pushing the altcoin below 50 cents in the near future. Furthermore, XRP has closed below the critical weekly rising Logarithmic support level for the past five weeks.

Rejuvenating XRP Bulls

To establish an upward trend and avoid becoming a "zombie coin," XRP must consistently close above the weekly 50 Moving Average (MA). Failure to regain control by the bulls could lead to a further decline towards the support level of approximately 42 cents in the coming weeks.

Crucially, Ripple must prevail in its legal battle against the United States Securities and Exchange Commission (SEC).

#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed its redacted remedies reply brief & supporting exhibits.https://t.co/qZ6GTtSFmL— James K. Filan (@FilanLaw) May 7, 2024

On Tuesday, the US SEC submitted its remedies reply brief and supporting exhibits under seal. Ripple also filed its redacted remedies reply brief and supporting exhibits upon entry of final judgment.

Future Outlook

Ripple Labs has staunchly defended XRP in court against the SEC's regulatory enforcement actions. With the US Congress working to establish clear regulations for cryptocurrencies and stablecoins, XRPL developers remain optimistic about the future.

Additionally, Ripple has recently launched XRPL's automated market maker (AMM) and plans to introduce its fiat-backed stablecoins later this year.

However, Ripple must continue to develop XRPL to become a major Web3 hub on par with Solana (SOL) and Ethereum (ETH) or risk being overshadowed by meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB).