- XRP’s value plummets by 20% to $0.42 amid rumors of Tesla liquidating Bitcoin holdings and rising U.S. interest rates.
- The SEC’s intention to appeal against a Ripple-related ruling adds to the uncertainty surrounding XRP’s future trajectory.
Market Tremors and XRP’s Downward Dive
In the dynamically shifting crypto landscape, XRP has recently faced a storm of uncertainties. The crypto market, already sensitized by rumors published in the Wall Street Journal about Tesla’s potential divestment of $377 million in Bitcoin, was further jolted by the Federal Open Market Committee (FOMC) minutes. These minutes alluded to future hikes in interest rates as an inflation countermeasure. With the U.S. 10-year yield reaching its highest in 15 years, Decentral Park Capital’s trader, Lewis Harland, commented on the bearish outlook for risk assets, suggesting further potential drops if the bond sell-off persists.
XRP’s Struggles in Focus
Amidst these broad market influences, XRP’s price trajectory has been notably tumultuous. From a robust July high of $0.93, XRP’s market position declined, and the recent events pulled it down further to $0.42. This sharp decline is not just a reflection of external market events; internal metrics paint a concerning picture as well.
The Moving Average Convergence Divergence (MACD), an indicator utilized to identify changes in an asset’s strength, direction, momentum, and duration of a trend, signals a bearish outlook for XRP. The blue MACD line’s move below the red signal line, coupled with a dominant outflow observed in the Money Flow Index (MFI), underlines the negative sentiment around XRP. With XRP trading beneath major moving averages, it’s evident that bearish sentiments are gaining momentum.
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The SEC’s Influence
Adding to XRP’s challenges is the recent legal motion from the Securities and Exchange Commission (SEC). The SEC’s wish to appeal a particular aspect of the ruling against Ripple has been green-lighted by Judge Analisa Torres. This appeal aims to challenge the court’s stance on XRP sales on third-party platforms, insisting they should be treated differently from direct institutional sales. Ripple has a limited timeframe to respond, with a deadline set for September 1, extendable to September 8.
While the current scenario seems grim, there’s potential for a rebound. The Relative Strength Index (RSI), which gauges the magnitude of recent price changes to evaluate overbought or oversold conditions, indicates XRP is significantly oversold. This could hint at a possible recovery, with the next significant price hurdle at $0.51, giving traders a glimmer of hope.
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