Ripple Price Analysis: XRP Is Snowballing Towards $0.50
Daily Ripple XRP Price Forecast
- Ripple price has dropped after flashing the sell signal in the TD sequential indicator.
- The 4-hour XRP chart shows multiple sell signals.
Between February 8 and February 13, the Ripple price rose from $0.417 to $0.633. Following that, XRP has flashed the sell signal in the form of the green-nine candlestick in the TD sequential indicator and dropped.
Ripple Price Has Four Straight Bearish Days
After flashing the sell signal, XRP has had four straight bearish days, wherein it fell from $0.633 to $0.506 as it snowballs towards the $0.50 psychological level. Due to this drop, the Ripple price is no longer overvalued, as per the relative strength index.
Image: XRP/USD daily
The 4-hour Ripple price chart has flashed three sell signals:
- XRP has managed to flip the 50-bar SMA from support to resistance.
- The MACD shows sustained bearish momentum.
- The parabolic SAR has flipped from bullish to bearish, which shows that market sentiment is presently negative.
Image: XRP/USD 4-hour
Ripple and SEC Lawsuit Likely To Not Have A Settlement
Ripple and the US Securities and Exchange Commission (SEC) have recently filed a joint letter to the District Court for the Southern District of New York. The letter said that there’s no prospect for settlement “at this time.” An excerpt from the letter reads:
Counsel for the parties have met and conferred and, having previously discussed settlement, do not believe there is a prospect for settlement at this time. However, the parties will promptly notify the Court if any settlement in principle is reached as to any Defendant.
The letter mentioned that the settlement talks were only held with the SEC’s division directors who have already left the agency. In early January, Ripple CEO Brad Garlinghouse had revealed that the company’s attempts to settle the SEC’s charges fell through.
Ripple appears to be hoping that the Biden administration will be more lenient toward the company. However, Gary Gensler, newly-nominated SEC chairman, explicitly said that there was a “strong case” for XRP to be considered as a security.
The case will be over no earlier than August 16 - the day all discovery is expected to be completed. An initial pretrial conference has been scheduled for February 22.
Ripple Price Is Expected To Reach These Levels
The Ripple price is likely going to drop to the $0.50 psychological level. A further drop will take XRP to the 20-day SMA ($0.475).