Ripple Price Analysis: XRP Continues Uninspiring Price Trend As SBI And Nomura Continue Their Support
Daily Ripple XRP Price Forecast
- This December, Ripple has wholly negated all the gains it made from November.
- The MACD in the weekly chart shows increasing bearish momentum, so a further drop is expected.
The price of XRP has been on a steady decline in the light of the upcoming lawsuit against Ripple by the US Securities and Exchange Commission (SEC). XRP has had an extremely catastrophic December as one can see in the following chart.
Image: XRP/USD monthly chart
Having dropped from $0.664 to $0.216, XRP has more than negated all the gains the bulls have made over November.
XRP Buyers Fail To Gain Momentum
In the weekly chart, the cross border remittance token encountered resistance at $0.624 and then crashed down. In the process, it fell below the 20-bar and 50-bar SMAs. The MACD shows increasing bearish momentum, so further drop is expected.
Image: XRP/USD weekly chart
Upon checking the daily chart, we can see that the Bollinger Band has started to constrict, which shows decreasing price volatility. As one can see, the price is presently sandwiched between the $0.173 support line and the 200-day SMA.
Image: XRP/USD daily chart
The relative strength index (RSI) is trending along the edge of the oversold zone. This shows that the asset is on the verge of being underpriced, triggering the buyers to re-enter the market.
Nomura and SBI Holdings Continue To Support XRP
However, the asset appears to be finding support in Japan as many crypto exchanges in the country have refused to delist it.
According to Sadakazu Osaki, an analyst from the research firm Nomura Research Institute, Japan considers XRP as a crypto asset (according to the Funds Settlement Act) as securities are registered with the Financial Services Agency (FSA) for “offering or sale.” The researcher added that this is why the token can not be considered as a security and thus, the SEC lawsuit won’t have an impact on the status of the token in Japan.
Osaki also highlighted the popularity that XRP has in Japan, as the token “is widely traded in cryptocurrency exchanges in Japan”
It can be said that the interpretation that it does not fall under ‘securities’ under the Financial Instruments and Exchange Act, which requires the submission of a document, has been established. This point will not be affected by the proceedings between the SEC and Ripple.
SBI Holdings, one of Japan’s biggest financial companies, agrees with Osaki. The firm stated that exchanges will keep trading the token in compliance with the local laws.
Key Price Levels To XRP
For XRP, the downside is limited at the $0.173 support. For the bulls, the upside is limited at $0.297 by strong resistance.