Ripple Price Analysis: XRP Faces Repeated Rejection At 20-day SMA
Daily Ripple XRP Price Forecast
- Ripple price is trending in a narrow range for a little over two weeks.
- The MACD in the 4-hour XRP chart shows sustained bearish momentum.
Ripple price is trending in a narrow range between $0.31 to $0.265 for a little over two weeks. As things stand, XRP is stuck between robust technical levels and is expected to keep trending horizontally. Let’s take a closer look with technical analysis.
Ripple Beared Down By 20-day SMA
Ripple price is currently stuck between the 20-day SMA ($0.29) and the $0.257 support barrier. As things stand, XRP is trending around the $0.265-mark. The 20-day SMA is keeping the price repeatedly in check.
Image: XRP/USD daily
Even if the Ripple price breaks above the 20-day SMA, the 50-day SMA ($0.3075) is right there to push XRP down. When we see the 4-hour chart, we can see that XRP is hovering below the 20-bar, 50-bar, and 200-bar SMAs in this timeframe.
Image: XRP/USD 4-hour
The MACD shows sustained bearish momentum, so one could expect a further drop. If this does happen, the $0.257 support barrier needs to hold firm to prevent a catastrophic fall.
TechCrunch Founder Questions SEC Lawsuit
The founder of TechCrunch, Micheal Arrington, has shared his views on the US Securities and Exchange Commission’s (SEC) lawsuit against Ripple. Arrington argued that the Howey test (used to determine whether XRP tokens are sold as unregistered securities) is outdated.
In a recent interview with Layah Heilpern, the founder said that the Howey test is no longer relevant. According to Investopedia, the test can determine if a transaction represents an investment contract if “a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.”
Arrington added that people buy digital assets hoping to make money when denominating the crypto assets in USD. When asked whether these crypto transactions are securities, he added that it depends because if it is, the SEC can “really put the hurt on you.”
I think it’s all securities in the sense of, we’re all buying these things because we’re trying to get into assets that will protect us from what the dollar is doing. But no, we look at the Howey Test, the hundred-year-old test that’s absolutely useless in a modern world. It’s ridiculous…
The founder noted that he doesn’t believe that XRP is a security. His comments come after the SEC alleged Ripple and two of its executives of selling XRP tokens as unregistered securities.
To the entrepreneur, the SEC is an entity that changes over time, and what it wants overtime is “largely going to be dependent on what the executive branch wants over time.” Notably, Arrington is the founder of Arrington XRP Capital, a digital asset management company that uses XRP to invest in blockchain technology.
Ripple Price Is Expected To Reach These Levels
The Ripple price is probably going to continue its horizontal trend. If XRP does break below the $0.257 support line, it will be interesting to see exactly how far it drops.