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XRP, the fourth largest cryptocurrency by market capitalization, has returned above the $2 mark following an earlier drop amid a broader sell-off in risk assets.
Macroeconomic concerns prompted a broad risk-off slide throughout markets this week, with cryptocurrencies among the hardest impacted. Bitcoin fell 8% to $78,167 on Friday, taking its loss from its all-time high less than six weeks ago to almost 30%.
XRP fell to a low of $1.95 on Friday but later pared its losses, trading in green in early Saturday's session and at March's start. At the time of writing, XRP was up 12% in the last 24 hours to $2.15, although it was still more than 16% lower than a week ago.
Arman ShirinyanXRP has slowly declined since Jan. 16, when it reached seven-year highs of $3.39; the drop has taken it below key technical levels that many traders watch for signs that the sell-off may have gone too far, prompting dip buyers to step in and at least pause the declines.
XRP is currently trading below its 50-day moving average of $2.71, which has buoyed up its price since last November. The cryptocurrency also briefly fell below the $2 mark in Friday's trading session before rebounding.
What comes next?
If the current XRP price rebound is sustained, buyers will attempt to push the price above the daily SMA 50 at $2.71, a previous support but now resistance. XRP's attempt to stay above the daily SMA 50 was cut short in mid-February, confirming it as a short-term barrier. If this is successful, it might signal that bulls are back in the game.
Meanwhile, optimism remains in the XRP community on the Ripple lawsuit, which is in the appeals stage as the SEC clears its slate of crypto enforcement actions, potentially creating a favorable environment for digital assets.
Tomiwabold OlajideIn the past month alone, the regulator has dismissed or paused at least eight cases against crypto companies, including high-profile lawsuits against crypto exchanges Coinbase, Gemini and Binance Holdings as well as threats of legal action against Robinhood, Uniswap and OpenSea.
Positive developments in the Ripple SEC litigation have historically boosted the XRP price, so the community will keep an eye on this. On the contrary, if selling pressure returns, XRP may test support at $1.95 and $1.79.
Dan Burgin
Vladislav Sopov