- Ripple bows to rejection at $1.9, risking a colossal breakdown due to rising overhead pressure.
- A break under the ascending channel's lower edge support could trigger sell orders.
- Ripple looks forward to Gary Gensler's tenure as the chair of the US SEC.
Ripple price action has turned bearish after running into a massive barrier at $1.9. Before the seller congestion, the cross-border token had sustained a tremendous uptrend from April 5 price levels slightly under $0.6. If the technical picture remains unchanged, XRP will assume a downtrend eyeing $1.4.
Why Ripple Eyes Gary Gensler as the SEC's New Chair
Ripple Labs and its top executives, Brad Garlinghouse and Chris Larsen, have celebrated sequential wins against the United States Securities and Exchange Commission (SEC). The regulator alleges that the defendants in the lawsuit it filed in December sold unregistered tokens to raise funds. However, the court proceedings continue to show that the SEC has a weak case that may come to bite back for not providing regulatory clarity.
Many believe that Gary Gensler, who the Senate has confirmed to lead the regulatory body, will be a breath of fresh air. Gensler is known for his experience in resolving financial crises and currently leads the Biden–Harris transition's Federal Reserve, Banking and Securities Regulators agency review team. Ripple hopes that his tenure at the SEC will help bring clarity to the cryptocurrency ecosystem. Ripple's CEO Garlinghouse stated that:
"I'm hopeful with Gary Gensler and the new chair likely to be confirmed in a couple of weeks. There's an opportunity to have a conversation with that new leadership as he brings his team in".
Ripple Bears Swing Into Action
Ripple is fighting for support at the ascending parallel channel's lower boundary. The zone has been key to XRP sustaining the uptrend over the last couple of weeks. Therefore, if lost, massive declines are expected to grip Ripple.
Note that the Moving Average Convergence Divergence (MACD) indicator on the four-hour chart reveals that the bearish trend is in its initial stages. The MACD line has crossed beneath the signal line, adding weight to the outlook. Overhead pressure will keep rising as the indicator falls toward the midline.
XRP/USD Four-Hour Chart
On the downside, support is expected at $1.5, but if the bearish leg extends, Ripple will stretch the losses to the 50 Simple Moving Average (SMA), highlighted at $1.42. Other support levels to keep in mind include the 100 SMA near $1.4 and the primary anchor at $0.9.