After dipping earlier, the price of XRP has stabilized, declining by 0.18% in the past day. But since OpenSea left out Ripple in its response to the SEC’s Wells Notice, increasing anxiety has surfaced due to concerns about a more substantial decline.
The 4.68% monthly decline in XRP that it has experienced since last Thursday has been exacerbated by today’s price movement, which has disrupted the stability that has been seen in recent weeks.
It appears that traders’ enthusiasm has been dampened by this lackluster performance, as trading volume has dropped 32.18% to $1.113 billion in the last day.
OpenSea Snubbs Ripple In SEC Response
After leaving out Ripple from its response to the Wells Notice issued by the U.S. Securities and Exchange Commission (SEC), the NFT marketplace OpenSea has drawn criticism.
The notice, which usually serves as a warning of impending enforcement action, states that the SEC intends to prosecute OpenSea, though this is not a given.
Declaring itself “shocked” by the notice, OpenSea publicly denounced the SEC’s “sweeping move” against creators and artists. The marketplace cited Coinbase, Uniswap, and Kraken among other businesses fighting the SEC in support of itself.
Though some members of the community have taken note of OpenSea’s snub, Ripple, which emerged victorious against the regulator in July of last year, was noticeably absent from the list. One social media user wrote:
“Ripple has spent hundreds of millions of dollars fighting the SEC, and numerous companies have relied on the Ripple lawsuit in their defenses. Yet, Opensea has somehow failed to acknowledge them—what a disappointment”
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
— Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.
Cryptocurrencies have long…
XRP Price Analysis – Further Declines Ahead?
Upon closer inspection of the price chart of XRP, it appears that OpenSea’s post might have contributed to the drop in XRP during the previous day.
The tweet immediately caused a sell-off, but the price of XRP has since recovered and formed a symmetrical triangle pattern, indicating a consolidation phase prior to a significant move in either direction.
On the other hand, momentum indicators point to the possibility of future favorable price action. Most significantly, the purple Relative Strength Index (RSI) has recovered to almost neutral territory but has not broken above 50, indicating a slight bearish bias.
The lack of buying pressure is indicative of traders’ cautious attitude, which may keep XRP from rising further in the near future unless more robust demand emerges.
XRP’s Chaikin Money Flow (CMF) (green) indicates that even though the RSI’s momentum has slowed, the market is still inclined toward an upside breakout from the pattern. This is encouraging news. The CMF is currently sitting at +0.15.
Since the immediate resistance at $0.5770 has repeatedly stifled momentum during XRP’s consolidation, traders should keep an eye on this level for confirmation of a successful breakout.
The next major point of contention is resistance from the 50DMA (pink), which has been instrumental in forming the current pattern that XRP is following.
The price of XRP may rise further to make up for this week’s losses and get closer to the $0.5975 mark if it can break above the 50DMA.
Yet, considering the current low trader interest in XRP, stronger catalysts will be needed to start a meaningful rally above this level.