- Ripple slumps from highs close to $2 as declines increase intensity toward $1.
- The Wall Street Journal editorial board criticizes the SEC for not regulating cryptocurrencies properlRy.
- The four-hour SuperTrend indicator recently presented a sell signal.
The entire cryptocurrency flipped red on Sunday, with $300 billion wiped off. Experts say that a power outage may have triggered the declines in one of the Chinese regions popular with Bitcoin mining. However, the real cause of the volatility remains unknown, keeping in mind that some analysts predicted volatility following the Coinbase listing on Nasdaq.
Ripple Least Resistance Path is Downward
The flagship cross-border token trades at $1.41 at the time of writing. Its trend is generally bearish based on the printed descending parallel channel. Simultaneously, the upside is capped under the 50 Simple Moving Average (SMA) on the four-hour chart.
XRP's attempted to recover after the dip to $1.12, but recovery is an uphill battle based on the sluggish price action across the market. Besides, the Relative Strength Index (RSI) suggests that the slightest hurdled path is south. Currently, the RSI has been rejected from the midline and is likely to continue in the near term.
XRP/USD Four-Hour Chart
It is essential to realize that losing support at the channel’s middle boundary is likely to trigger more losses toward $1. The bearish leg may continue in the near term, especially if the lower edge is broken as well.
The SuperTrend Indicator has recently flashed a sell signal, implying that the trend was changing bearish. Ripple’s winning streak over the last two weeks appears to have been shattered, forcing bulls to play defense in a bid to prevent the price from dropping under $1.
XRP/USD Four-Hour Chart
The Wall Street Journal Calls out the US SEC for Improper Regulations
Ripple has found another high-profile media outlet supporting the fight against the United States Securities and Exchange Commission (SEC)’s lawsuit. The Wall Street Journal, in its April 19 published op-ed, called out the regulator for not providing clear guidelines regarding crypto regulations.
The board believes that the ongoing lawsuit against the blockchain company hurts investors and could be in bad faith. The statement read:
“U.S. participants in the $2 trillion cryptocurrency market are seeking clarity that the agency has declined to provide, preferring to announce its positions through individual enforcement actions.”
Meanwhile, Ripple and its top executives are looking forward to the new chair of the SEC, Gary Gensler, to guide the body in bringing forth a clear regulatory framework for the industry. Note that Forbes has also criticized the SEC’s approach in regulatory to the digital currency market.