XRP price freefall grinds to a halt as crypto market cap surrenders the $1 trillion mark
- XRP price is on the verge of bouncing off a rectangle support pattern for gains above $0.3667.
- Ripple and the SEC finally have a settlement window for the ongoing court case.
- Losses engulf the entire cryptocurrency market, forcing the total crypto market cap below $1 trillion.
XRP price is in the process of fortifying support around $0.3180 in the wake of a sharp decline from resistance at $0.3367. Although the cross-border money remittance token trades slightly above $0.3200, all eyes are fixated on its ability to bounce off support for a sustained northbound move.
On the other hand, analysts believe that as Bitcoin price slips below $19,000, it is pulling the entire crypto market down. It is doddering at $18,751 at the time of writing while Ethereum price struggles to nurse about 9.0% in daily losses. These widespread declines have seen the total crypto market cap drop to $982 billion; besides that, it could test June levels of $875 billion.
Ripple vs. SEC lawsuit: Is a settlement on the horizon?
The Ripple vs. SEC lawsuit has dragged on for nearly two years. However, Jeremy Hogan, a legal expert closely following the case, believes both parties could arrive at a settlement over the next few months.
According to Hogan, the allegations the Securities and Exchange Commission (SEC) filed against Ripple Labs and its top executives that it sold XRP as an unregistered security may be settled before November.
“[The] most likely settlement timeframe is from now until the end of November, because the cards will be on the table,” Hogan reckoned.
The lawsuit has relatively suppressed XRP price to the extent it failed to hit a new lifetime high during the previous bull market. A positive outcome may change the narrative, allowing XRP price to achieve its bullish potential.
XRP price rebounds toward a possible rectangle breakout
XRP price was rejected on its latest breakout mission by resistance at the top of a rectangle price pattern, as illustrated in the four-hour chart below. The losses were unstoppable until the international money transfer token hit the governing pattern’s support line.
Due to extreme volatility, XRP price hit oversold levels twice in the same week. Nevertheless, an applied Stochastic oscillator reveals a strong uptrend in the cards. It is worth noting that the index flipped bullish as soon as it lifted out of the oversold region. If the Stochastic upholds this uptrend, bulls will regain confidence and realign their mission to the rectangle hurdle at $0.3367 – beyond that they may even be ready for the ultimate climb past $1.0000.
XRP/USD four-hour chart
The market value realized value (MVRV) on-chain metric by Santiment affirms the upcoming XRP price breakout. With a reading of -5.35%, investors generally feel XRP is undervalued and, therefore, in a buy zone.
XRP MVRV on-chain model
Usually, a reading above the mean line (0.00%) implies overvaluation. In other words, most holders are in profit and will likely sell to make a profit. Investors must heed the bullish call to buy XRP – a move that may set up the cross-border money transfer token for a rally in the coming days – maybe weeks.