Ripple Price Analysis: XRP Trends Between Two Significant Levels
Daily Ripple XRP Price Forecast
- XRP is trending along the edge of the oversold zone.
- The MACD shows increasing bearish momentum.
After trending horizontally over the last three days, the price has dipped dramatically in the early hours of Monday. By falling below $0.30, the price has also broken below the 200-day SMA. Let’s see what’s going on behind the scenes with technical analysis.
XRP Sandwiched Between 200-day And 20-day SMAs
Over the last four days, the price has repeatedly tried to test the $0.36 resistance barrier but failed. The 200-day SMA was holding strong, but unfortunately, it looks like the bears managed to have the last laugh.
Image: XRP/USD daily chart
XRP has been on a downtrend for the last month or so due to the SEC lawsuit. However, the bulls managed to come through in the clutch this Thursday. The price then trended horizontally for a bit before dropping to $0.283.
Image: XRP/USD 4-hour chart
The 4-hour price chart for XRP shows that price is presently sitting on top of the 50-bar SMA. The buyers will need to do all that they can to prevent a drastic fall. However, the MACD shows increasing bearish momentum. This means that this support level is going to flip from support to resistance.
XRP Is A Fuel for Cross-Border Payments, Says SEC
Here’s the latest chapter in the XRP-SEC saga.
According to Stuart Alderoty, Ripple’s general counsel, the US Securities and Exchange Commission (SEC) has acknowledged XRP’s function as fuel for cross-border payments. The SEC’s acknowledgement of XRP’s role in Ripple’s On-Demand Liquidity (ODL) can be found in the Commission's recent lawsuit against Ripple.
An excerpt from the lawsuit reads:
ODL involves a transaction in which a money transmitter in a sender’s jurisdiction converts fiat currency into XRP, transfers the XRP to a recipient’s jurisdiction, and converts the XRP into the fiat currency of that locale. Typically, instead of holding XRP directly, money transmitters who may use ODL would rely on market makers in the sender’s and recipient’s jurisdictions to trade in and out of XRP in about ninety seconds or less.
Alderoty took to Twitter to point to this segment as a “key point to keep in mind” as Ripple prepares its case. He said that the SEC’s passage on XRP fueling online payments positions the token as an unique and innovative technology.
The SEC has alleged that XRP is an unregistered security. Alderoty said that Ripple’s legal team will be filing an official response soon.
To all asking for updates on the SEC lawsuit: no surprise, the legal process takes time! We may be quiet but we are not idle. Our full legal team will announce themselves shortly and we’ll be filing our initial response to the SEC’s unproven allegations within weeks.
Key Price Levels To Watch For XRP
If XRP breaks below the 20-day SMA and the 50-bar SMA, the price will likely test the $0.173 support. If that does happen, then all eyes will be on the $0.173 support. A break below that could be absolutely catastrophic.