Crypto: XRP plunges below $0.50 amid heated debate over ETHgate

Ripple’s XRP token corrected to $0.50 this Monday morning, losing all its gains from the past seven days. This drop comes as the XRP community ponders over the impact of the ETHgate controversy on the ongoing lawsuit between Ripple and the SEC.

XRP Losing Ground

The Ripple token has undergone a substantial correction of over 20% in the last seven days, nullifying progress made since April 22nd. This downward pressure coincides with an upcoming key milestone in the legal battle against the US regulator, namely the SEC’s imminent submission of an opposition brief in response to Ripple’s motion.

Back in March, the SEC had introduced a new expert testimony to support its request for an injunction aimed at preventing Ripple from marketing XRP to institutional investors. This move dampened the enthusiasm of XRP holders who are watching the proceedings with concern.

The Ripple vs SEC case, the main catalyst for XRP price movements, now enters a critical phase with the SEC’s much-awaited response to Ripple’s motion. A decision in favor of the regulator could add to the short-term bearish pressure on the altcoin.

The Shadow of ETHgate Hovering Over the Ripple Case

Alongside, the controversial ETHgate theory resurfaces on specialized social media. According to these allegations, the SEC deliberately favored Ethereum while targeting Ripple and its XRP token. Suspicions of conflicts of interest particularly revolve around William Hinman, former SEC official with ties to a law firm involved with Ethereum.

This debate is inflaming the crypto community. While Charles Hoskinson, Ethereum co-founder and founder of Cardano, categorically rejects these speculations as “endless and unfounded,” David Schwartz, Ripple’s CTO, challenges him on a potential regulatory free pass given to ETH.

https://x.com/IOHK_Charles/status/1784683970745213000

XRP Oversold, an Opportunity for Nimble Crypto Traders?

From a technical analysis standpoint, XRP is in oversold territory according to the advanced Connors RSI indicator, presenting attractive entry levels around $0.50. Opportunistic traders could therefore bet on a technical rebound towards $0.62, marking a potential appreciation of 22.5% in the short term.

However, the bearish trend is likely to persist as long as a definitive outcome has not been reached in the Ripple/SEC legal saga. The coming weeks are crucial for XRP, whose trajectory hinges on the numerous twists and turns of this highly publicized case.

In summary, the Ripple lawsuit and the ETHgate controversy continue to keep XRP under pressure, despite a potentially bullish technical outlook in the short term. The crypto community will be closely monitoring the SEC’s filing today, April 29th, which could significantly influence the direction of the token in the coming days.