The price of XRP, the native cryptocurrency of the XRP Ledger, could be headed for a significant drop according to a recent analyst prediction. TopgOptions, an analyst on TradingView, has set a price target of $0.18 for XRP in light of recent legal issues facing crypto exchange Binance and shifts in Bitcoin whale behavior.
Binance is currently embroiled in a lawsuit filed by the SEC accusing the exchange of illegally listing unregistered securities. This legal battle has created uncertainty in the broader cryptocurrency market. In addition, data shows that Bitcoin whale holdings have declined to 55.5%, their lowest level since May 2022. The decreasing concentration of whales, defined as entities holding between 100 and 100,000 BTC, could lead to increased volatility.
In the wake of these developments, TopgOptions believes the XRP price outlook is bearish. After reaching a recent high of $0.5134, XRP remains below resistance at $0.5450. TopgOptions sees the coin falling to $0.18 amid the unstable regulatory environment and potential whale behavior changes.
The XRP price showed signs of recovery on Friday after bullish momentum halted a three-day rally the previous day. XRP rose from a low of $0.5025 on Thursday to reach $0.5134, coming closer to the key resistance level of $0.5450. The rebound coincided with the relative strength index (RSI) surpassing 47.00. The RSI currently sits at 48.72, with the next target near 54.00. If the 54.00 level is reached, analysts say it’s highly likely XRP will break above $0.5400 in the near-term.
Despite the recent upside, XRP remains firmly rangebound since July surge when the price was above $0.80.
The SEC case against Binance speaks to broader oversight issues in the cryptocurrency space. Without clear legislative guidance, exchanges may continue listing coins that run afoul of securities laws. Meanwhile, the decline in whales’ share of Bitcoin supply could reshape market dynamics and amplify volatility. Both factors create significant downside risks for major cryptocurrencies like XRP.
While the $0.18 target price represents a major pullback from current levels, TopgOptions contends it is plausible given the confluence of regulatory uncertainty and shifting Bitcoin whale behavior. However, the prediction remains speculative and the XRP price may see significant fluctuations in the coming weeks and months.
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