Ripple Price Analysis: Bears In Full Control As They Aim For $0.2
Daily Ripple XRP Price Forecast
- Ripple bears have remained in control for 10 days out of the last 11.
- The MACD in the 4-hour chart has shifted from bullish to bearish
Over the last six days, Ripple has dropped from $0.34 to $0.22, falling below the 200-day SMA and the $0.256 resistance barrier. Just how far is the cross-border remittance token going to drop? Let’s take a look with technical analysis.
$0.172 Support Line More Critical Than Ever Before
As things stand, the price is like going to reach $0.2 soon. Following that, the only viable support wall lies down at $0.172. If XRP buyers are still sceptical about buying in when the price reaches $2, nothing will stop XRP from crashing to $0.172.
Image: XRP/USD daily chart
The 50-day SMA has crossed over the 20-day SMA to form the bearish cross pattern. Plus, the relative strength index has been trending along the edge of the oversold zone. Both these indicators show that the sellers can drop the price even more.
Image: XRP/USD 4-hour chart
In the 4-hour chart, we can see that after hugging onto the middle Bollinger Band for so long, the price has dipped below the lower Bollinger band. The MACD has also reversed from bullish to bearish to so a further price drop is expected.
Cardano Creator: XRP Is Not Security, But Has Problematic Distribution
Charles Hoskinson, the creator of Cardano, recently commented on the US Securities and Exchange Commission’s (SEC) case against Ripple. The SEC has alleged that XRP is an unregistered security. In an Ask Me Anything (AMA) session, Hoskinson noted that the problem with regulating crypto assets is that tokens are dynamic and difficult to categorize.
Hoskinson said that he does not believe XRP is a security. However, its status may have been different in its early days.
In my prior statements, I said I don’t think XRP is a security, and I think in its current form, its current use and the level of decentralization the ecosystem has, that that’s certainly true. Was Ripple a security at some point during its life? I’m sure a fair argument could be made.
According to Hoskinson, how XRP has been distributed may be an issue. He said that he finds it unusual that Ripple would be responsible for distributing a token in the age of smart contracts.
I believe that XRP is not a security at least in the general sense, and I go back to that stem cell argument. There is certainly security-like behaviour and it’s deeply puzzling to me, for example, in the age of smart contracts why an actual real company would be responsible for distribution of a token.
Hoskinson added that he doesn’t believe there will be a domino effect on the cryptocurrency industry at large if XRP is ultimately declared a security. Furthermore, he added that in his opinion, the big issue in 2021 will be about proof-of-stake - whether proof-of-stake makes a cryptocurrency a security or not. He noted that it does not, in his opinion.
Key Price Levels To Watch For XRP
The most crucial level for XRP is the $0.2 psychological level. We have to see if the SEC lawsuit has scared off enough people or not and whether their faith in XRP has completely vanished or not. If the sellers maintain an advantage, the buyers will not prevent a drop to the $0.172 support barrier.