Ripple Price Analysis: XRP Consolidates Below $0.38
Daily Ripple XRP Price Forecast
- Ripple price has been trending horizontally after a sharp drop.
- The MACD in the 4-hour price shows sustained bearish momentum.
Ripple price is going through a price consolidation phase following Monday’s drastic drop. It looks like XRP is back to its old habits of low volatility horizontal trends.
Ripple Is Back To Trading Horizontally Again
Following this Monday’s weird swings ($0.78 to $0.37), the Ripple price is back trading horizontally again. As things stand, XRP is trending below the $0.38 level. The $0.31 support is extremely robust since it sees a confluence of the 20-day, 50-day, and 200-day SMAs.
Image: XRP/USD daily
The 4-hour Ripple price chart shows a sustained bearish momentum, so it is implausible that XRP will experience any wild volatility swings.
Image: XRP/USD 4hour
SEC’s Ripple Suit Is A Big Mistake – Former SEC Executive
Joseph A. Hall, a former executive at the US Securities and Exchange Commission (SEC), recently explained why the agency’s lawsuit against Ripple is “considerably less a slam dunk than its previous crypto enforcement actions.” In an article for Law360, Hall noted that the SEC’s legal battle against Ripple over XRP shows the need for regulatory clarity pertaining to crypto assets.
The SEC has alleged Ripple Labs and two of its executives of selling XRP tokens as unregistered securities. Hall has predicted that Gary Gensler, President Joe Biden’s pick for US Treasury Secretary, will “chart a different course from recently departed SEC Chairman Jay Clayton.” Gensler was the head of the US Commodity Futures Trading Commission (CFTC) during the Obama administration.
With luck, the agency’s heretofore skeptical approach to the regulation of digital assets, or cryptocurrency, will be one of them — particularly with the SEC’s decision, a day before Clayton’s late December departure, to file a suit against Ripple Labs Inc. over its cryptocurrency XRP.
Hall also emphasized that the SEC’s Howey test - used for deciding whether a particular crypto asset is a security - is inadequate. He went on to argue that the lack of regulatory clarity significantly hurts the development of blockchain technology in the US.
It’s difficult to overstate the impact this uncertainty has on the development of blockchain technology in the U.S. Outside the venture capital community, corporations, major investors and banks are understandably skittish about risking serious sums of money on technologies their lawyers can’t assure them comply with law — even when a technology holds the potential to improve the efficiency of managing vast amounts of data across countless industries, or the potential for frictionless, inexpensive transfers of value over smartphones and other widespread consumer tools.
Ripple Price Is Expected To Reach These Levels
The Ripple price is probably going to keep trending around $0.38. However, it's challenging to predict XRP because of its community’s recent activity. So don’t be surprised if XRP somehow manages to breach $0.40 again.