Ripple Price Prediction: XRP Drops Below The Bollinger Band
Daily Ripple XRP Technical Analysis
- Ripple price has flashed buy signal in the 4-hour chart.
- The MACD shows increasing bearish market momentum.
Between June 4 and June 20, the Ripple price crashed from $1.05 to $0.77 after failing to cross over the 20-day SMA. Following that, on June 21, XRP crashed further to $0.60 and reversed the 200-day SMA from support to resistance.
Ripple Price Volatility On The Rise
This Tuesday, the Ripple price dropped a bit more to $0.55 as it continued to hover below the Bollinger Band. The MACD shows increasing bearish momentum so a further drop is in the cards, The Band has also started expanding to show increasing volatility.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple price had crashed from $0.77 to $0.56 after encountering resistance at the 20-bar SMA. During this crash, XRP has pushed the relative strength index (RSI) into the oversold zone. However, Ripple managed to flash the buy signal with the red-nine candlestick and jump up, which, in turn, pushed the RSI into the neutral zone.
Image: XRP/USD 4-hour
Hester Pierce: XRP Might Not Be a Security
In a recent Bloomberg interview, US SEC's Hester Peirce said that a cryptocurrency doesn’t necessarily have to be a security if its issuer gets sued by the agency.
Peirce, who has earned the “Crypto Mom” title for her vocal support of the crypto industry, claimed an enforcement action means that the asset was being sold as an investment contract. She said:
When we think about a crypto asset as being a security what, we’re doing is we’re saying it’s being sold as part of an investment contract, which means that there are promises being made around the sale of this asset. It doesn’t mean that the asset itself necessarily has to be a security. It means that it was being sold as a security.
Peirce believes that the SEC needs to provide more regulatory clarity before the agency spends too much time on non-fraud cases. The SEC filed a lawsuit against payments company Ripple in December 2020, together with its two high-profile executives, Chris Larsen and Brad Garlinghouse, over their unregistered XRP sales that allegedly violated federal securities laws.
However, the defendants argue that its sales and distribution of XRP were not investment contracts since XRP holders do not have any stake in the company.
As per earlier reports, the court recently greenlit the SEC’s request for a two-month discovery extension in the Ripple case, which means that the case might stretch well into 2022.
Ripple Price Is Expected To Reach These Levels
As things stand, the Ripple price will break below the $0.55 support wall and drop to the $0.50 psychological level.