Why Is XRP’s Price Down Today?

XRP has been among the top losers, with a nearly 5% drop in the past 24 hours, bringing its price to around $2.08. The overall crypto market is mostly moving sideways today, with several altcoins experiencing losses. XRP's decline, however, appears to be influenced by a combination of legal, technical, and investor sentiment factors that are negatively impacting its short-term outlook.

The main catalyst for XRP's price drop is Judge Analisa Torres' recent decision regarding the XRP-SEC case. She rejected a joint request from Ripple and the SEC for early feedback on their proposed $50 million settlement deal. The judge stated that no decision will be made until the appeal process is concluded, which has disappointed investors expecting a quicker resolution.

XRP's network activity has significantly decreased, as shown by XRP Scan Data. Daily transactions on the XRP Ledger dropped by 84%, from nearly 1.83 million to just 277,147 on June 27. Additionally, large XRP holders have been selling, which has further contributed to the price decline.

Investor optimism surrounding the approval of a U.S.-based XRP spot ETF has waned. Just a few weeks ago, the odds of approval stood at over 95%, but they have since dropped to 76% following the latest court ruling. This fading hope has caused many investors to hold off on purchasing more XRP.

The overall weakness in the crypto market is also affecting XRP. Bitcoin and other major coins are in the red, weighed down by factors like the ongoing conflict in the Middle East and profit-taking. XRP, already struggling with legal challenges, is feeling additional pressure.

Technically, XRP's price has broken below its bullish flag pattern, signaling strong selling momentum. The MACD indicator also shows bearish signals. If this trend continues, XRP might fall towards $1.90 before potentially recovering with renewed strength.