Surprisingly, the technical indications for XRP are indicating a significant loss of momentum as many people are currently selling.
Prior to departing its current drop troughs, its relative strength index (purple), which went from 60 a few days ago to 30 at the moment, is expected to drop below 30.
The 30-day moving average for XRP (red) is also beginning to go downward. It won't truly have bottomed out until it drops below its 200-day average (blue).
This pessimism stems from the possibility that another Terra-like collapse and transition event could have an impact on the bitcoin industry.
Given that FTX has a significant position in the ecosystem, other market participants may also have severe difficulties as a result of the exchange's bankruptcy.
Binance made an acquisition bid for FTX.com yesterday. Although its fulfilment is not assured at this uncertain point, if accepted, such a contract might perhaps hinder a larger shift to the bitcoin market.
In any case, with the market down 11% over the last day, investors are currently in a panic.
This has obviously hurt XRP, but the SEC's ruling in its suit against cryptocurrency firm LBRY, which could have implications for Ripple's regulatory issue, also had a negative effect on XRP.
This may include XRP, which has declined more quickly than Bitcoin (BTC) in recent days, for example, as a result of the case's resolution.
However, prior to the recent incidents, Ripple had fared reasonably well in its legal battle with the SEC.