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Ripple’s XRP Drops 5%: Why Long-Term Indicators Remain

Author: Content Editor
Ripple's XRP has seen recent gains despite a 5% price correction in the last day. The positive sentiment in the crypto market and optimism around friendly crypto regulations have contributed to XRP reaching high price levels last seen seven years ago. XRP has climbed 330% in the past, reaching $2.85, and currently ranks as the fourth largest cryptocurrency with a market capitalization of $130 billion. However, trading volumes have declined by 47% in the past day. Ripple faced regulatory uncertainty in the past, but a court ruling in 2023 declared that XRP was not a security when sold to the public, relieving regulatory pressure. The court did hand the SEC a partial victory by declaring that selling XRP tokens amounted to offering unregistered securities. Ripple was ordered to pay $125 million in penalties and was issued an injunction against future violations. Despite the penalty, the ruling boosted investor confidence. The appointment of a crypto-friendly SEC Chair by Donald Trump has also energized the market. Technical analysis shows that XRP has surpassed its price resistance level of $1.5, but indicators suggest the market is overbought and the price could drop in the short term. XRP futures open interest has reached $3.54 billion, indicating significant activity from traders betting on further gains. XRP has surpassed some rivals and is now the fourth-largest digital asset. The upcoming RLUSD stablecoin, awaiting regulatory approval, aims to enhance XRP's role in cross-border transactions and could contribute to a higher price.

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