The lack of essential updates on the Ripple v SEC lawsuit has subjected XRP to the whims of the broader markets.
XRP, Ripple’s native token, has been subjected to the oscillations of the broader cryptocurrency market due to a deficiency of significant updates on the lawsuit between Ripple and the U.S. Securities and Exchange Commission. This has subsequently led to a massive 7% decline in 24 hours, triggered by the generally bearish atmosphere surrounding digital assets.
Yesterday was especially unfavorable for XRP, as the asset crashed below the $0.35 level, leading to a low of $0.3478, which was last witnessed on November 21. The Crypto Basic previously highlighted the asset’s risk of revisiting $0.35 when it changed hands at $0.3819 following the end of a two-day winning streak. The Friday decline was XRP’s third losing session.
The U.S. Bearish Macro Conditions and the Mazars Group Report
The legal tussle between Ripple and the U.S. SEC has contributed to XRP’s price movements for some time. As it nears an end, updates on the lawsuit have stalled, with the next court session scheduled for December 22, on which omnibus motions will be filed by all parties to seal all the materials concerning the previously-filed summary judgment motions.
The days leading to the next court date have been filled with uncertainty that has subjected XRP to a bearish trajectory featured within the market. The macro conditions within the United States have not been favorable to the markets, as risk assets, including stocks and cryptocurrencies, have been underperforming in the wake of several inauspicious reports.
The Fed toned down on its interest rate hikes, but the recent 50 bps increase did not bode well for the markets. Recently-disclosed U.S. Purchasing Managers Index (PMI) numbers signaled more bad news for the economy, with recession fears emerging. In December, the PMI for S&P Global plummeted to a 4-month low, with the manufacturing index declining to a 31-month bottom.
Market-wide selloffs ensued yesterday, as the S&P 500 fell by 1.1% while the Nasdaq Composite index shed 1% of its value, signifying another losing session. The crypto markets followed suit, as most assets had their biggest 24-hour declines since November 9. Reports of Mazars Group deciding to stop auditing reports for crypto exchanges further exacerbated the situation. XRP was caught in this unpropitious bearing.
XRP’s Price Analysis
XRP’s third losing session of yesterday was its biggest 24-hour decline since the 17.94% fall on November 9 at the start of the FTX saga. The asset ended Friday with a 7.12% decline, resulting in a closing price of $0.3411. XRP has found some support from the bulls, gaining by 1.17% today, trading at $0.3552 as of press time.
The asset’s journey to the first crucial resistance level at $0.3728 is significantly hinged on its recapture of the pivot point at $0.3586. If the asset can reclaim $0.3650, it could be a bullish indication of enough strength to push further. In the event of sustained bullishness, XRP could gun for the second crucial resistance level at $0.3941. Should the asset successfully tower over the second resistance, $0.40 could play out, as its third significant resistance rests on $0.4296.
Notwithstanding, if the pivot point at $0.3586 is not reclaimed soon, XRP is at risk of tumbling to the first critical support at $0.3374. The market should avoid the territory below $0.33, as sustained selloffs could push the asset to the second support at $0.3232. The zone below $0.30 is not out of reach, with XRP’s third support sitting at $0.2877.