XRP Price Decline to $1.20
XRP struggled significantly over the past 24 hours, trading down 6% to $1.17, and the sell-off was exacerbated by negative price action in the broader crypto markets. More than $25 million worth of XRP long positions were liquidated, causing traders to flee their positions and to begin selling XRP.
The wider crypto sell-off likely contributed as BTC fell under $63,000. Additionally, the risk-off nature of most market participants, due to tensions between the US and Iran, likely contributed to a selling environment for XRP and many other cryptocurrencies.
XRP Price Resurgence?
XRP may see a restoration in positive price action, as US crypto regulations may see movement in the near future. Investors have taken notice of the CLARITY Act, which, once passed, will greatly improve the regulatory framework for digital assets in the United States.
Cynthia Lummis stated that a Senate vote on the CLARITY Act may come after the 4th of July recess. This may cause the development of the Act to come in early to mid-August. Lawmakers are currently finalizing the recommendations from the relevant committees and working on the ethics and GENIUS Act amendments.
If the CLARITY Act makes headway, it stands to positively impact investor confidence in the digital asset space. With Ripple’s historical legal battles in the U.S., XRP sees regulatory clarity as essential. Thus, positive movement in legislation could be bullish for the token.
XRP ETFs have experienced $5.34 million in outflows as investors exhibit selling behavior. XRP ETPs were at the center with $5.34 million in cumulative outflows. The biggest departure was with Bitwise, with $4.06 million leaving. Other asset managers, including 21Shares and Grayscale, were also impacted.
In the positive column, the cumulative net inflows to XRP investment products were $1.42 billion. The net assets totaled about $1.03 billion, which is about 1.39% of the total market cap of XRP. XRP maintain a healthy status, as the daily trading volume totaled 13.13 million shares.
XRP has traded in a bearish pattern, defined by a lower high lower low structure. Currently, the support level at $1.20 is broken, and XRP is testing the lower boundary for the descending channel.
The MACD is in the bearish zone, and the RSI is at 24, indicating oversold conditions.
Continued bearish pressure may push XRP down to around the $1.10 support level, and possibly even $1.05. A drop to these levels would likely be met with sufficient selling pressure given the oversold condition. XRP is also likely to bounce back. In that case, expect initial XRP resistance at $1.30, with a bullish target at $1.20. A shift in bullish control with an XRP price breakout above the descending channel would greatly improve the price outlook.
Conclusion
Even though XRP has recently decreased below $1.20 after $25 million worth of long positions were liquidated, something bullish may still be brewing for XRP. August will probably be big for XRP’s price because of the advancement of the CLARITY Act.
The CLARITY Act, if passed, will create clear guidelines for crypto in the United States, reducing ambiguity. Regulatory clarity will likely bring more confidence to investors, encourage institutional investors, and improve the sentiment of the market overall, all of which would positively impact XRP.
XRP’s price is currently being pressured by bearish technicals and negative sentiment from ETF outflows, even though XRP is in a deeply oversold state and is due for a technical correction.
If positive regulatory changes occur and buyers take back control of the price, XRP may surge and break the $1.20 and $1.30 resistance barriers. Traders are watching the developments of crypto regulation progress closely because it is likely to spark XRP’s largest price movement.
