XRP recently sparked interest after rallying to a multi-month high of $0.63. However, the coin is erasing these gains, dropping by over 8% in the last 24 hours.
XRP was trading at $0.56 on Thursday, with the bearish sentiment across the broader crypto market doing little to cool off the bearish sentiment.
The recent price decline comes after the Ripple community was rattled by the cancellation of a meeting with the US Securities and Exchange Commission (SEC).
ZyCrypto reported that the Ripple community was looking forward to this private meeting amid speculation that a settlement would be discussed. A settlement could have ended the years-long SEC case, which continues to inhibit XRP’s price growth.
The SEC did not disclose the reason for canceling the meeting, but the news has triggered questions over whether the litigation could end soon.
Pro-XRP lawyer Fred Rispoli had earlier hinted that this case would close by July 31. However, there have not been any recent filings hinting at the end of the case.
XRP Wipes Recent Gains As Whales Accumulate
XRP is currently in a free fall, having made the most losses among the top ten largest cryptos by market cap. Despite the dip, XRPLedger’s native token remains up by over 25% from its weekly low of $0.44.
XRP’s Relative Strength Index (RSI) at 39 shows bearish momentum. The RSI line has also dropped alongside the price, confirming the downtrend. With sellers in control, XRP could likely drop lower, with $0.51 being a key support level.
The XRP price touching the lower Bollinger band further confirms the bearish thesis. Furthermore, the bands are widening, showing volatile price action as traders who bought during the recent rally rush to sell.
The downtrend witnessed across the crypto market in the last 24 hours worsens the situation. However, amid the ongoing chaos, whales have emerged to scoop up more XRP coins at a low price.
On Thursday, one XRP whale moved 24 million XRP tokens worth $13.92 million from the Binance exchange to an unknown wallet. The address later deposited an additional 26 million XRP from Binance to another wallet.
These transactions indicate that whales are showing diamond hands despite the volatile price. Large XRP holders are betting on the token’s long-term potential and are unwilling to sell. If this resilience continues, XRP could swiftly recover and rally higher.
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