XRP Drops Below $2.70 as Elon Musk’s DOGE Sets Sights on SEC Probe

The downturn follows an announcement that Elon Musk’s Department of Government Efficiency (DOGE) is setting its sights on the SEC, scrutinizing the agency for potential waste, fraud, and abuse.

The move by DOGE has injected fresh uncertainty into the cryptocurrency market. Investors are closely watching how the examination could impact the ongoing legal battle between Ripple and the SEC. If the probe uncovers misconduct, it could strengthen Ripple’s position and accelerate regulatory clarity in the crypto space.

The DOGE movement, spearheaded by Tesla and SpaceX CEO Elon Musk, has been at the forefront of exposing inefficiencies in government agencies. Its latest target, the SEC, has provided hope for XRP enthusiasts who believe the agency may have targeted Ripple in an unfair way.

DOGE is calling for public tips on SEC misconduct, with crypto users pointing to the XRP vs. SEC case as a prime example of waste, fraud, and harm to investors. Source: DOGE SEC via X

Crypto journalist Eleanor Terrett pointed out the significance of this action, stating, “If DOGE finds widespread abuse or waste, it would aid in making the case that the SEC exceeded its authority in suing Ripple.”

DOGE is turning its attention to the SEC. Source: Eleanor Terrett via X

The SEC, under its new leadership, has a closed-door meeting scheduled for February 20, during which it can also decide to call off its appeal against Judge Analisa Torres’ ruling. XRP’s prior sales to the retail market, which the erstwhile SEC had tried to regulate as securities, were rejected by Torres. A decision to halt the appeal could indicate a shift in the agency’s stance, much like its recent actions in cases involving Binance and Coinbase.

XRP’s recent price movement has raised concerns among traders. After last week’s 10% price hike, the token was unable to continue its rise and dropped 4% over the last 24 hours. A crucial resistance of $2.70 could not be held, and expectations have been generated that XRP will continue falling if it fails to hold above $2.55.

XRP could pull back near the $2.40 support following the bearish breakout of the $2.70 level. Source: EliteFxAcademy_CRY on TradingView

The technical indicators are pointing to a retest of the $2.24 support level in case of a continued pullback. The 14-day Exponential Moving Average (EMA) stands at around $2.55, which is a pivotal point for the bulls as they fail to curb their losses.

“RSI and Stochastic Oscillator are losing steam,” commented a cryptocurrency expert. “Failure to close below $1.96 will invalidate the bullish case, which may push XRP to $1.35.”

Market participants are holding their breath for the SEC’s move, particularly regarding XRP-based exchange-traded funds (ETFs) approval. The agency recently acknowledged ETF applications, implying a possible regulatory milestone.

In the meantime, sentiment in the market is divided. Though Bitcoin and Ethereum continue to have significant support points, a lack of bullish momentum across the crypto market is causing investors to be cautious.

Ripple (XRP) was trading at around $2.58, down 3.65% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

XRP’s short-term price trajectory is based on its ability to recover $2.70 and whether DOGE’s attention to the SEC has a positive impact on Ripple. If regulatory pressure eases, XRP can recover, but the absence of such efforts could result in prolonged consolidation or more losses.

As things unfold, traders and investors will be closely monitoring regulatory announcements and price action, looking to see whether or not XRP can hold major support levels in the next couple of days.