Uponreachingthe$0.56thresholdonOctober17,theXRPtokenhasbeenexperiencinganegativepriceoutlook.Asaresult,thecryptocurrencyretestedthe$0.51mark,anarealastseenonOctober3.Thiszone,however,hasactedasasolidsupportforthealtcoin,resultinginabouncebacktowardthe$0.5305levelasofpresstime.

Thismarksamodest0.52%uptickcomparedtothepreviousday’sprice.Thisvolatilityinthealtcoin’smarketisprimarilyattributedtotheongoinglegalbattlebetweenRippleandtheSEC,whichhasfueledspeculationandtensionamonginvestors.

RippleCo-FounderFailstoMeetCriticalCourtDeadline

Rippleco-founderChrisLarsenrecentlymissedacriticaldeadlinetofileanoticeofappearance,alegalnecessityintheongoingRipple-SECcase.Inresponse,attorneyMarkFaguel,anexpertinSECenforcement,warnedonXthatifLarsen’slegalteamfailstosubmittherequiredpaperworkbytheloomingNovember5deadline,theyrisklosingtheopportunitytopresentoralarguments.

NOTE:ThishasnothingtodowiththeSEC,oranysupposedlylatefiling(whichwasn\'tlate).ThisisdirectedatLarsen,whohasnotyetfiledhisappearanceinthiscase.

—MarcFagel(@Marc_Fagel)October22,2024

ThismisstepcouldweakenLarsen’sdefensestrategyinthecase.However,thisdevelopmentdoesn’taffectRipple’soverallstandinginthelawsuit.Ripple’sChiefLegalOfficer,StuartAlderoty,quicklyreassuredanxiousXRPholders,confirmingthatRipplewillmeetitsOctober25,2024deadlinetofileitspre-argumentbrief.

ThefirmplanstochallengetheSEC’slegalstanceonJudgeAnalisaTorres’rulingregardingXRP’sinstitutionalsales.OnceRipple’sfilingiscomplete,thetimelineforappealbriefswillbeset,andtheSECwilllikelyhaveupto90daystorespond.Thisprocesscoulddragthecasewellintomid-2025,extendingwhathasalreadybeenalengthylegalbattle.

XRP’sOn-ChainDataHintatBearishSentiment

XRP’son-chaindata,ontheotherhand,hintsatabearishoutlookintheshortterm,withdecreasedwalletactivityandadeclineintransactions.AccordingtoXRPScanmetrics,thetokenhaswitnessedthenumberofnewaccountscreateddecreasingfromapeakof3,707accountsonOctober20toalowof1,306atpresstime.

ThisadversepriceactionisfurtherbolsteredbythefactthatthenumberoftransactionsontheXRPledgerhasalsobeeninadowntrendfromahighof1.704milliontransactioncounttoalowof712.468Ktoday.Thisindicatesalackofinterestoractivityinthetoken,asthemarketisfulloftensionanduncertaintysurroundingregulatoryissues.

XRP’sMarketOutlook:What’sNext?

AsobservedonTradingView’sdailychart,thecryptocurrencyisreboundingfromyesterday’slowof$0.51.Therelativestrengthindexcementsthisscenarioasitpointsupwards,implyingabullishsentimentbuildingupinthenearterm.Positionedat41.85,theindicatorsignalsamplespacefortheoptimisticpriceactiontopersistinthecomingdays.

Suchascenariomaypushthetokentochallengethe23.6%Fibonaccilevelat$0.5410,withthelikelihoodofbreakingaboveit.Thesuccessofthismovelargelydependsonthecryptocurrencyclosingabovethe200-daysimplemovingaverageatthe$0.5386threshold.

Thiscouldfurtherpropelthealtcointohigherlevelsaround$0.5629,aligningwiththe38.2%Fibonaccimark,whereitcouldencounterresistance.Conversely,ashiftinmarketsentimentmightpulltheXRPtokentorevisitits$0.51lowagain,possiblybreakingbelowitthistimeround.

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