XRP fell below the key $2.72 level, facing increased volatility amid news that Elon Musk’s Department of Government Efficiency (DOGE) is shifting its focus toward the Securities and Exchange Commission (SEC). Investors anticipate that the DOGE’s examination could expose waste, fraud, and abuse within the agency, particularly in its case against Ripple (XRP).
DOGE’s Investigation Sparks Market Uncertainty
The DOGE, led by Tesla and SpaceX CEO Elon Musk, has announced an investigation into the SEC, adding pressure to the ongoing regulatory landscape surrounding crypto-related enforcement actions. The move has fueled speculation that the Ripple vs. SEC case could come under scrutiny, potentially shifting the legal tide in Ripple’s favor.
Crypto community members believe that if the DOGE finds evidence of misconduct in the SEC’s handling of past crypto cases, it could reinforce claims that former SEC Chair Gary Gensler’s administration unfairly pursued legal action against crypto firms. Additionally, the SEC’s new administration is set to hold a closed-door meeting on February 20, where it may decide whether to pause its appeal against Judge Analisa Torres’ ruling—which previously determined that XRP retail sales do not constitute securities.
XRP Price Outlook: Key Support and Resistance Levels
Following the DOGE’s announcement, XRP dropped 4% during the early Asian trading session on Tuesday, failing to hold above $2.72. If the price fails to recover from its $2.55 support level, XRP could decline further toward $2.24.
Technical indicators suggest weakening bullish momentum:
- The 14-day Exponential Moving Average (EMA) at $2.55 could serve as short-term support.
- If XRP closes below $1.96, the bearish trend could deepen, sending the price toward $1.35.
- The Relative Strength Index (RSI) and Stochastic Oscillator are above neutral but trending downward, indicating a potential loss of buying pressure.
Potential XRP ETF Approval on the Horizon?
Meanwhile, the SEC acknowledged XRP ETF applications on Friday, fueling speculation that a resolution in the Ripple case could open doors for new institutional investment products. If the SEC pauses its appeal, it could signal the beginning of a legal victory for Ripple, boosting investor sentiment.
With DOGE’s examination of the SEC gaining momentum and XRP facing critical technical levels, the coming weeks could be pivotal for both Ripple’s legal standing and its market performance.
