Ripple Price Analysis: XRP Continues To be Sandwiched Between Strong Technicals
Daily Ripple XRP Price Forecast
- Ripple price is currently trending between the 20-day and 200-day SMAs.
- Ripple is preparing to defend itself and XRP against the SEC.
Ripple price continues to trend horizontally below the $0.30 mark. As things stand, wild price swings are a little infeasible for XRP since it's trending between two strong technical levels. However, the 4-hour chart shows us that this may change soon.
Ripple Price Trends Below $0.30
As you can see, the Ripple price has been trapped between the 20-day SMA and the 200-day SMA for quite some time now. While the former has prevented the Ripple price from going through a catastrophic fall, the latter has been continuously putting the buyers in check.
Image: XRP/USD daily
Now, when we look at the 4-hour chart, we can see that the Bollinger band had been constricting regularly for a while. The band has started to widen, which could mean that the consolidation period is over, and we can expect a price movement soon. Since the MACD shows increasing bullish momentum, we can expect this price movement to be positive.
Image: XRP/USD 4-hour
Ripple Plans SEC Fightback
Ripple has recently shed light on how it plans to defend itself in the upcoming lawsuit initiated by the US Securities and Exchange Commission (SEC). The agency has alleged Ripple and its executives of selling XRP tokens as unregistered securities.
XRP’s price movement over the years is likely to play an essential role in Ripple’s defense. A Yahoo Finance report noted that Ripple plans to show that Ripple's news stories have had no impact on the price of XRP. For instance, XRP traded sideways on June 19th of 2019 as Ripple announced a strategic partnership with the payments giant MoneyGram.
In a bid to show that Ripple’s business model is not dependant on XRP, Ripple reportedly plans to highlight its payment products. The company is also expected to make the case that the company was “around for years before the creation of XRP” and currently has healthy liquidity in the cryptocurrency markets that have nothing to do with Ripple.
As per a DailyHodl report, Ripple will argue that XRP sales were made without buyers realizing they were buying from Ripple. This means the transaction couldn’t be an investment contract, according to Ripple.
Ripple Price Is Expected To Reach These Levels
If our bullish recovery hypothesis holds, you can expect the Ripple price to break past the 200-day SMA and make a dash for the 50-bar SMA ($0.327) in the 4-hour chart. If this is nothing more than a false positive, then expect XRP to continue its horizontal trend.