On Wednesday, Judge Analisa Torres ruled that Ripple Labs would face a $125 million fine for civil penalties and prohibited the company from future breaches of securities regulations. This marked the end of prolonged battle between the SEC and Ripple, skyrocketing the XRP price toward new monthly highs. However, in recent hours, the price of XRP is facing a correction as several indicators have turned bearish following a selling pressure near peaks.
XRP’s Open Interest Declines By 10%
In recent hours, the price of XRP has seen a significant decline, driven by a strong selling presence near the recent monthly peak of $0.64. According to Coinglass, there has been an increase in long-position liquidations, with total liquidations reaching $1.3 million. Buyers have liquidated approximately $1.2 million in positions in the last four hours.
Also read: Ripple Price Prediction 2024 – 2025: Will The Case Closure Push XRP To $1?
Previously, in July 2023, Judge Torres ruled that while XRP’s sales to institutions violated securities laws, transactions made to the general public through cryptocurrency exchanges were legal. This week, the Judge resolved the conflict between the SEC and Ripple by imposing a $125 million penalty on Ripple.
Although this decision initially triggered a bullish trend for XRP, the altcoin struggled to sustain buyer interest. This boosted sellers’ confidence, leading to a decrease in buyer control over XRP prices. Data indicates a significant reduction in XRP’s open interest, which fell by nearly 11% to $456 million. Lower open interest along with a declining price could establish robust resistance and plunge the chances of a potential recovery.
The transaction volume has experienced a sharp decrease, falling more than 65% to below $5 billion. Despite this, the prevailing sentiment indicates a potential bullish rebound in the XRP price, driven by a significant increase in the long-short ratio. Currently, the ratio stands at 1.181, with 54% of positions being long, hinting at an imminent rise in XRP’s price.
What’s Next For XRP Price?
XRP climbed above the moving averages to touch the overhead resistance at $0.64, reflecting strong buying interest from the bulls. However, bulls failed to hold the momentum as selling dominance surged near that level. This plunged the price below the 23.6% Fib channel, resulting in a retest for XRP price. As of writing, XRP price trades at $0.58, declining over 7.2% in the last 24 hours.
Although the bears are attempting to send the price below $0.57, the bulls maintain a slight edge by keeping the price around the 20-day EMA ($0.59). Should the price rebound from its current position, the likelihood of a surge past $0.64 increases, potentially pushing the XRP/USDT pair towards $0.74.
On the other hand, if the price falls and closes below the 20-day EMA, it could indicate that the pair might continue to fluctuate between $0.43 and $0.64 for some time.
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