In today’s trading session, XRP price is down by 3 percent, continuing a sideways market trend that has persisted since early November of last year. The horizontal trend has seen its price mostly trading within the narrow price margins of between $0.33 and $0.41 for the past few months. However, despite the sideways market trend, XRP has still managed to go up by 18 percent year-to-date, partly due to opening the year trading on the lower end of narrow price margins.
Why XRP Price Continues to Struggle
Part of the reason that we have seen the XRP continue to trade in a sideways market for months has to do with its case against the SEC. On December 2020, the SEC sued ripple, claiming that the XRP tokens they had sold, worth about $1.38 billion, constituted a sale of unregistered securities. in the lawsuit, the platform’s CEO, Bradley Garlinghouse, and Executive Chairman, Chris Larsen, were also named as co-defendants in the suit.
In the past few months, the case has progressed to a point where most people expect the ruling to be in the next few months. The decision is expected to impact the platform forever, in whichever direction the courts decide.
However, investors’ biggest worry about the case has been the scenario where the platform loses the lawsuit, and the tokens sold on December 2020 are declared as unregistered securities. Such a ruling will most likely see XRP losing its value and poses a possibility of the project becoming doomed.
XRP Price Forecast
As with other analyses I have done for the past few weeks, I still expect the XRP price to continue trading in a sideways market. My XRP expectation for the next few weeks, and possibly months, is for it to continue trading within the narrow margins of between $0.33 and $0.41.
With today’s price dropping by 3 percent, I expect to see the XRP value approaching the $0.33 support level in the coming sessions. However, trading above or below these narrow margins will invalidate my horizontal price analysis.