XRP price rally stalls as SEC vs. Ripple ruling drags on — 25% drop ahead?

XRP (XRP) roseate 2.1% to $0.52 connected April 11, extending its regular gains from $0.50 alongside a broader cryptocurrency marketplace rally arsenic traders pinned hopes connected easing ostentation data into April 12.

XRP price: lackluster volumes rise hazard of 25% correction

XRP's upside determination brought it person to breaking retired of its prevailing bull pennant range with a terms people of $0.65.

XRP/USD regular candle terms chart. Source: Tradingview

However, lackluster volumes accompanying XRP's gains hinted astatine a imaginable terms correction successful the future. That could mean a short-term pullback toward the pennant's little trendline adjacent $0.51 successful April oregon a broader correction altogether invalidating the bullish continuation setup.

The extended selloff script is champion disposable connected the play illustration below, wherein a cardinal resistance-turned-support enactment has constricted XRP's upside prospects.

XRP/USD play terms chart. Source: TradingView

If the fractal plays retired again, XRP terms volition hazard falling toward its multi-month ascending trendline enactment adjacent $0.40 by May, down astir 25% from existent terms levels.

SEC vs. Ripple hype cools down

XRP terms has soared by astir 55% successful 2023 chiefly owed to anticipations that Ripple volition triumph the suit filed against it by the U.S. Securities and Exchange Commission (SEC). That includes its 43% emergence successful March amid speculations that the ruling volition travel retired by the month's end.

Related: Ripple, Montenegro motion woody connected task for unspecified nationalist integer currency

But it didn't. Simultaneously, the Google hunt people for the keyword "SEC vs. Ripple" declined from its March highest of 100 — a cleanable people — to 56 successful the week ending April 8.

Internet trends for the keyword 'SEC vs. Ripple' connected a 12-month comparative basis. Source: Google Trends

In addition, "XRP" societal volumes dropped from their March highs, according to information tracked by Santiment.

XRP societal volumes. Source: Santiment

Lastly, XRP remains successful lockstep with Bitcoin (BTC) connected a regular timeframe. However, arsenic Cointelegraph noted, BTC risks a correction to $25,000 successful the adjacent word owed to complaint hike risks, putting XRP and different altcoins successful information of losses arsenic well.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.