Ripple Price Prediction: XRP Looks To Break Below $0.40
Daily Ripple XRP Technical Analysis
- The 50-day SMA has stopped the XRP bears for now.
- The MACD shows increasing bearish market momentum.
The Ripple price dropped from $0.63 on February 14 to $0.408, as of writing. During this drop, the XRP/USD daily chart has flipped the 20-day SMA from support to resistance. Let’s take a closer look with technical analysis.
Ripple Price Is Trending In Downward Channel
The Ripple price is dropping in a downwards channel formation. The parabolic SAR shows us that the current market sentiment is negative. The 50-day SMA has stayed strong and prevented XRP from dropping any further. The RSI is looking to drop to the oversold zone.
Image: XRP/USD daily
Looking at 200-bar SMA has crossed over the 20-bar SMA to form the bearish cross pattern. It is now on course to cross above the 50-bar SMA to form a death cross. The MACD shows increasing bearish market momentum. All these signals tell us that a further drop for XRP is on the cards.
Image: XRP/USD 4hour
Why Did Ripple’s Arch-Nemesis SEC Issue A Risk Alert For Crypto?
The US Securities and Exchange Commission (SEC) has recently released a Risk Alert regarding crypto securities. The regulator pointed out that Risk Alerts are not judgments, warnings or hints at acceptance regarding the subject matter. The alerts only represent the view of the Commission.
The SEC noted that it observed certain points “during examinations of investment advisers, broker-dealers, and transfer agents” regarding crypto. It broke down the observations and pointed to issues that drew the Commission’s attention. The SEC’s concerns are largely focused around AML, operational security and record-keeping, and risk management. As per the SEC, crypto exchanges attract a lot of issues in terms of registrations. This includes exchanges registering their users as well as exchanges registering with the SEC itself.
SEC Commissioner Hester Pierce, commonly known as Crypto Mom, took to Twitter to solicit opinions about the Risk Alert.
“SEC's exam division released a risk alert on digital assets. I welcome your feedback: https://sec.gov/files/digital-assets-risk-alert.pdf”
Crypto regulation in the US has been an issue for quite some time now. The case of Ripple Labs is one example where the SEC is struggling due to a lack of clarity and cooperation. Ripple Labs settled securities issues with Financial Crimes Enforcement Network (FinCEN) and paid a fine in 2015. It has also licensed its XRP token with the State of New York as a digital currency. However, in December 2020, the SEC filed charges against Ripple regarding an alleged $1.2 billion in unregistered securities sales of XRP.
The lack of coordination between the Treasury and the SEC in the matter has raised many questions. Ripple CEO Brad Garlinghouse noted that Ripple has operated on the market for seven years since the FinCEN ruling without official comment from the SEC.
Ripple Price Is Expected To Reach These Levels
Looking at the current negative market sentiment, it is pretty evident that XRP is going to drop to the 200-day SMA ($0.34).