- Ripple price volatility is decreasing in the 1-day timeframe.
- XRP sits on critical levels in the 4-hour chart.
Between May 19 and May 23, XRP had crashed from $1.58 to $0.785 – losing 50% of its overall valuation. Over the last 48 hours, the Ripple price has been stuck under the $1 psychological level.
Buyers Continue To Fail To Push Ripple Price Above $1
During the afore-mentioned crash, XRP managed to flip the 20-day and 50-day SMAs from support to resistance. Then the buyers took control of the Ripple price this Monday and pushed it up from $0.784 to $0.98, pushing it back into the Bollinger Band. The bulls have repeatedly tried to break above the $1 psychological level, but have failed to do so. The Bollinger band has started to contract to show decreasing price volatility.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has managed to chart three separate buy signals – flipping the 50-bar SMA from resistance to support and the MACD shows sustained bullish momentum. Ripple needs to cross the $1.05 resistance barrier to reverse the parabolic SAR from negative to positive.
Image: XRP/USD 4-hour
Ripple CEO Says IPO “Highly Likely” Post-SEC
Brad Garlinghouse, the CEO of Ripple, recently said it’s “highly likely” that the company will go public after the SEC lawsuit. As per Business Insider, when asked about the prospect of going public, he said the chances are “very high at some point.”
Ripple’s decision to go public is not surprising given how successful Coinbase’s launch was. On the first day that NASDAQ listed Coinbase, its capitalization hit $100 billion at a certain point, eventually ending the day at $85.5 billion.
After the recent announcement, XRP jumped by 6%. At this juncture, the major holdup for Ripple Labs to make the jump to an IPO is the SEC lawsuit filed back on December 22, 2020. The lawsuit named Ripple Labs, Garlinghouse, and co-founder Christian Larsen. It alleged that XRP raised more than $1.3 billion via “an unregistered, ongoing digital asset securities offering.”
In response, Garlinghouse claimed that XRP is a commodity and that the USA is the “only country that lists XRP as a security.” All other countries classify XRP as a currency. The suit also alleged Ripple of distributed billions of XRP in exchange for non-cash considerations such as market-making services.
This has become a common issue lately for the SEC and Commodities Future Trading Commission (CFTC). Each has found difficulties in determining which cryptocurrencies are commodities and which are securities. To tackle this issue, the government agencies have teamed up to clarify digital asset regulations.
Ripple Price Is Expected To Reach These Levels
If the buyers somehow manage to break the Ripple price beyond the $1.50 resistance barrier, it will flip the market sentiment in the 4-hour chart from negative to positive.