XRP price was down for the second successive session on Monday following cues from the market bellwether, Bitcoin. The coin hit three-week highs of $2.60 on Saturday but traded at $2.45 at the time of writing amid a market-wide slump.
Cryptocurrency market analysis site Santiment reported that the trading volume was down to levels last seen on November 4th, a day before the US elections. According to Santiment, the steep decline is attributable to an element of Fear, Uncertainty and Doubt (FUD) in the market. However, such sentiment also increases the possibility of rebounds.
Crypto trading volume trends. Source: Santiment
A potentially disruptive week for XRP price
XRP price faces a potentially disruptive moment this week, as the deadline for the Securities and Exchange Commission (SEC) to file its opening brief for its appeal against an earlier ruling in a case vs. XRP issuer, Ripple Labs.
With Gary Gensler set to exit the commission on January 20, investors are crossing their fingers that the market regulator could opt against proceeding with the appeal. Therefore, the next two days will likely see a significant uptick in XRP price volatility.
Meanwhile, Gensler’s replacement, Paul Atkins is a known crypto supporter whose era could put an end to the SEC’s long-running high-handed approach to digital assets. Also, Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty met Donald Trump and his team last week. The meeting sent a subtle message to the market on what the future potentially holds for XRP price.
XRP Price Prediction
The momentum on XRP price signals that the upside will likely continue if resistance persists at $2.46. Immediate support is likely to be at $2.40, but a stronger downward momentum could break below that level and test $2.35.
On the other hand, the momentum will swing to the upside if XRPUSD breaks above $2.46. That could show that the pair encountered the first barrier at $2.51. The downside narrative will be invalid if XRP breaks above that level. Also, such an action could propel XRP price higher and test the second resistance at $2.56.
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