XRP Plummets 23%: Will SEC Appeals Push It Below $0.40?

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XRP faces significant selling pressure as bears take control of the market. After consecutive days of sharp losses, sellers show no signs of slowing down. XRP retested September lows around $0.50, only to bounce back slightly. However, the recent downturn erased all of the gains made in September. A further sell-off seems likely as it struggles to hold critical levels.

With XRP trading below $0.55, only a minor push would send the coin tumbling past $0.50. Such a move could trigger another wave of downward momentum. The current price action reflects the renewed strength of sellers. Despite showing some resilience in Q3 2024, it remains vulnerable. The recent drop has erased over 23% of its value from September highs, with bears firmly in control.

In the past week alone, XRP has lost nearly 12%, driven by a surge in trading volume. Market participants have traded almost $2 billion worth of XRP, indicating active engagement in the sell-off. Sellers are likely preparing for further declines, especially if it fails to reclaim key resistance levels.

Ripple’s Legal Woes Add to Selling Pressure

Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC) continues to weigh heavily on XRP. The SEC recently filed an appeal against a favorable court ruling for Ripple, intensifying market fears. The regulator seeks an injunction to prevent Ripple from selling XRP to institutions. This move has dampened investor confidence, increasing the likelihood of further losses.

Whale activity has also surged, according to data from Santiment, with XRP transaction volume spiking to over $2.3 billion—an eight-month high. This sudden increase suggests that major players are offloading their holdings, amplifying selling pressure.

XRP’s Price Outlook

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Currently, XRP/USD continues to slide, with sellers eyeing the next major target at $0.50. The ongoing decline could push the coin toward $0.40 if bearish momentum persists. For now, the only scenario that could reverse this bearish outlook would be a breakout above $0.55. Otherwise, it remains at risk of falling back to August lows.