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After teasing a potential macro bullish breakout earlier this week, Ripple Labs-backed XRP price dropped over 11 percent in the past 24 hours to retest the crucial support level of around 54 cents on Thursday during the early Asian session. The large-cap altcoin, with a fully diluted valuation of around $54 billion and a daily average traded volume of about $3.3 billion, was the largest loser among the top 50 crypto assets in the past 24 hours.
Major Factors that Contributed to XRP Price Drop Today
Investors’ Disappointment In SEC’s Decision to File Appeal Case
The initial market hype and FOMO triggered by the announcement that Bitwise filed an XRP ETP with the US SEC dramatically waned after the agency filed an appeal to Judge Analisa Torres’ ruling. XRP investors expressed notable disappointments amid an anticipated bullish breakout to a new all-time high.
With the SEC’s appeal case likely to take several quarters before conclusion, most XRP holders are now diversifying their portfolios into other well-positioned altcoins. Moreover, the crypto industry is expected to register a fresh bull run akin to Gold in the near term, which will mostly favor altcoins.
Whales Sell-off
According to on-chain data analysis, whale investors have deposited more than $30 million worth of XRP into different crypto exchanges led by Bitso and Bitstamp in the past 24 hours. Earlier this week, Ripple unlocked 1 billion XRP but returned 800 million to the escrow account.
With the onset of the SEC appeal against Ripple’s case, the XRP holders are expected to bear more pain as the firm sells more tokens to cover its legal costs.
Moreover, Ripple has in the past admitted that its business operations are not profitable without the monthly XRP sales.
Bearish Technicals
From a technical standpoint, XRP price lost a crucial support range between 60 cents and 58 cents in the recent past, thus invalidating a potential bullish breakout. According to a popular crypto analyst alias Credibull Crypto, XRP price must hold firmly onto the support level of around 54 cents to avoid further capitulation towards 43 cents ahead.