Ripple’s (XRP) price fell from $0.63 to $0.52 earlier this week due to another regulatory battle with the US SEC. However, traders in the derivatives market seem to believe that this is a temporary setback rather than a long-term barrier, as they held positions predicting a bounce for the altcoin.

Whether it’s true or false, this analysis examines the reasons behind this sentiment and what could be next for XRP.

Ripple Bulls Expect Light at the End of the Tunnel

On Wednesday, the US SEC filed an appeal challenging XRP’s non-security status, which had been declared by the court in July 2023. Shortly after the announcement, XRP’s price dropped, wiping out a significant portion of its recent gains.

While traders initially panicked and opted to shorten the token, data from Coinglass shows that things have now changed. According to the derivatives information portal, XRP’s Long/Short Ratio had risen to 2.10.

This ratio shows whether more traders are holding long positions than shorts. When the reading is less than 1, it means more traders are opting to go short, suggesting a bearish sentiment. On the other hand, readings higher than 1 indicate a dominance of long positions.

Read more: XRP ETF Explained: What It Is and How It Works

In XRP’s case, 67.75% of traders are taking long positions, while 32.25% have opted for short positions. This suggests that a majority of traders anticipate a rise in XRP’s value once the discussions surrounding the SEC appeal subside.

Furthermore, the liquidation heatmap, which identifies high areas of liquidity, seems to agree with bias. In short, the liquidation heatmap shows price levels where high-scale liquidations might occur.

It also helps traders to find the best liquidity positions. Specifically, if the color changes from purple to yellow,  then there is a high concentration of liquidity at that point, and the price might move in that direction. For XRP, these regions are between $0.62 and $0.63. As such, the altcoin’s value might soon experience a bounce toward those levels.

XRP Price Prediction: Oversold and Ready to Bounce

A look at the Bollinger Bands (BB) on the daily chart shows heightened volatility around XRP as the bands expanded. But beyond highlighting the level of volatility, the BB also shows if a token is overbought or oversold.

When the upper band of the BB touches the price, it is overbought. On the other hand, if the lower band taps the price, it is oversold. As seen below, the lower band of the indicator has hit XRP’s price at $0.52.

This indicates that slight buying pressure could be significant in triggering a rebound. Additionally, the altcoin’s price is at the same position as the 38.2% Fibonacci retracement level. This ratio, also known as the support floor, could also be vital in helping XRP rebound.

Read more: How To Buy XRP and Everything You Need To Know

Thus, there is a high chance that XRP’s price will beat the $0.58 resistance. If that happens, the altcoin’s price might jump to $0.62. However, if the SEC appeal advances with Ripple on the back foot, this prediction could be invalidated. In that case, XRP’s price might decrease to $0.48.

This week in crypto, we’ve got some juicy updates you won’t want to miss. This includes Telegram’s hottest airdrops to Grayscale’s picks for the top altcoins and the latest drama in the US Securities and Exchange Commission’s (SEC) showdown with Ripple. 

During the first week of October, the anticipation of “Uptober” died, with Bitcoin and other major crypto assets struggling. In the past seven days, Bitcoin is down by around 6.5%, currently trading at $61,400.

Despite the choppy price actions, there are some earning opportunities with the Telegram airdrops.

3 Upcoming Telegram Airdrops

As the crypto market enters Q4, several key Telegram airdrops are poised to capture the interest of digital asset enthusiasts. This month features promising opportunities for those looking to engage with emerging blockchain projects without an upfront financial investment.

Read more: Best Upcoming Airdrops in 2024

MemeFi, a leading Telegram-based game, invites users to battle meme-themed characters for cryptocurrency rewards. Scheduled for October 9, the MemeFi airdrop requires participants to engage through various tasks to be eligible for airdrop claims post token generation event. The allure of the airdrop is heightened by its massive 90% token distribution to users, a notable increase from its competitors.

Second on the list is X Empire, which offers players the chance to earn through strategic gameplay enhancements. The October 15 airdrop emphasizes the importance of active participation and network engagement, promising substantial returns for diligent players. This game merges the thrill of earning with the excitement of crypto gaming.

Lastly, TapSwap stands out with its straightforward earning mechanics, making it accessible to all crypto enthusiasts. The airdrop, set for mid-to-late October, rewards users for daily engagements and offers additional bonuses for financial supporters. Despite some launch delays, the project’s potential valuation and token prospects keep the community eager.

Why the Hamster Kombat (HMSTR) Airdrop Failed

Hamster Kombat’s much-anticipated airdrop faced setbacks, leading to widespread disappointment within the crypto community. Various reasons left the community disappointed with the HMSTR airdrop.

For instance, the airdrop’s execution saw many loyal players disqualified due to a last-minute anti-cheat system implementation, benefiting a few over the many. This move sparked significant backlash from the community.

“Hamster Kombat has cheated the community. They have allocated a large portion of airdrops to YouTubers and influencers for referrals. They’ve implemented vesting without informing the community. They’ve made people work like labor, day and night to collect keys from their games and gave $5 or $10 tokens,” Crypto with Khan, a prominent crypto influencer commented.

Read more: Top 8 Hamster Kombat Alternatives in 2024

Moreover, the airdrop was plagued by frequent postponements and abrupt rule changes, eroding trust and patience among participants. Additionally, an unexpected decision to withhold 11.25% of the tokens until next year further fueled dissatisfaction.

As a result, the HMSTR token’s value plummeted shortly after launch, with prices dropping over 60%. This decline was a major blow to investors’ confidence and financial outcomes.

Grayscale’s Top 20 Crypto

Grayscale has updated its investment strategy, identifying 20 cryptocurrencies that show promise for significant gains. This selection includes exciting additions like Sui (SUI) and Bittensor (TAO), which align with current market trends towards decentralized AI.

Grayscale’s strategy involves a meticulous analysis of potential market leaders based on diverse factors from network growth to token economics. This comprehensive approach ensures that the investment firm remains at the forefront of market dynamics, ready to capitalize on emerging opportunities.

“The Top 20 represents a diversified set of assets across Crypto Sectors that, in our view, have high potential over the coming quarter. Our approach incorporates a range of factors, including network growth/adoption, upcoming catalysts, sustainability of fundamentals, token valuation, token supply inflation, and potential tail risks,” Grayscale said.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Ripple vs. XRP Drama Returns

The SEC has resumed its legal challenge against Ripple, appealing a recent court decision that favored XRP.

The ongoing legal battle could significantly affect the classification and regulation of XRP as a non-security. Ripple’s CEO has voiced frustration over the SEC’s actions, emphasizing the unnecessary strain this puts on the firm and its stakeholders.

“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse stated.

This development has stirred the market, impacting XRP’s price. As a result, XRP’s price-action struggled during this week. Since Monday, the XRP price has been down by over 17%.

Read more: Ripple (XRP) Price Prediction 2024/2025/2030

Binance May Soon Delist These 5 Altcoins

Binance is poised to potentially delist five altcoins, reflecting its rigorous compliance and performance standards. The altcoins under scrutiny include Bluzelle (BLZ), CLV (CLV), SelfKey (KEY), Prosper (PROS), and VITE (VITE). Each of these tokens was added to Binance’s Monitoring Tag list, which signals possible issues with volatility, trading volume, or compliance with regulatory standards.

“Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform,” Binance warned.

Read more: Binance Review 2024: Is It the Right Crypto Exchange for You?

Following the announcement, there was an immediate market reaction with a noticeable decline in the prices of the flagged altcoins. VITE experienced the most substantial impact, plummeting nearly 25%. The others saw declines ranging from about 4.5% to over 15%.

Chainlink (LINK) has seen a 14% decline in value over the past seven days, mirroring the broader market downtrend. This double-digit drop has pushed Chainlink’s price below critical support levels, making it difficult to regain upward momentum without new demand entering the market.

This analysis highlights why LINK holders may need help to turn a profit over the next few weeks. 

Chainlink to Lose Key Support Levels

Chainlink’s price movements assessed on a one-day chart reveal that it now sits below its 20-day exponential moving average (EMA). An asset’s 20-day EMA tracks its average price over the past 20 trading days. It gives more weight to recent prices, making it useful for identifying potential reversals or trends in price action.

When price falls below this key moving average, it suggests that the short-term trend has turned downward and that further price declines are more likely.

Read more: How to Buy Chainlink (LINK) With a Credit Card: A Step-By-Step Guide

Furthermore, Chainlink’s price is poised to break below its Ichimoku Cloud, lending credence to its bearish outlook. The Ichimoku Cloud gauges market trends, momentum, and support/resistance levels. When an asset’s price drops below the Cloud, it suggests a bearish phase, indicating that downward momentum is prevailing.

When this happens, the Cloud becomes a resistance level, making it more challenging for the price to rise above it without a surge in buying pressure.

LINK Price Prediction: Only a Surge in Buying Can Save the Day

LINK’s Aroon Down Line, which tracks the strength of its downtrend, currently stands at 92.66%, confirming the token’s strong price decline.

A reading near 100% indicates that the price has consistently made lower highs, signaling a strong downtrend. If this trend persists, Chainlink’s price could drop another 27%, potentially revisiting its August 5 low of $8.12.

Read more: Chainlink (LINK) Price Prediction 2024/2025/2030

However, if the altcoin sees a resurgence in buying pressure and breaks above its Cloud and 20-day EMA, Chainlink’s price may climb toward $19.73.