RippleThere was a very important development last week in the securities lawsuit filed against .
US Securities and Exchange Commission (SEC) Even though it took a big hit XRP All has not changed for the NYC and this week looks pretty risky.
XRP Faces 3 Major Reasons for Drops
XRP has been consolidating in a descending triangle formation since seeing its second highest peak to date at $1.98 from April 2021.
As this consolidation continues, the XRP/USDT pair gained significant support around $0.55 as seen in the chart below.
XRP price Although it tested the upper point of the said triangle in the week of March 13, it has not yet broken it and its return from the upper point means that a decrease of at least 25% to 30% can be seen.
In order for XRP to break this, it must break the resistances of $ 0.82, then $ 0.95 and make a daily close.
Therefore, it is beneficial for investors to follow this chart.
While the first reason that could lead XRP down 30% is technical, the second seems to be fundamentally focused.
Ripple Labs recently moved 800 million XRP from its wallet and it is unknown what it will be used for. However, FUD has already started to spread on Twitter about 800 million XRP being available for sale and this is likely to affect the price.
I understood there are some 800 million $XRP that are locked up and ready to be sold…someone should check the increase in circulating supply to verify this
— Shyan (@tayshyan) March 12, 2022
The last reason is that investors who have been waiting for a long time are selling profits. The XRP price rose 15% on March 12 and investors can be expected to sell amid such a bearish risk.
Because it is known that when similar rises occurred before, the price fell sharply and long-term investors sold to get profit.