Ripple Price Prediction: XRP Stuck In The Lower Bollinger Band

Daily Ripple XRP Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ripple price has had three straight bearish sessions in the daily chart.
  • XRP faces robust resistance barriers upfront.
  • After encountering resistance at the 20-day SMA, the Ripple price has crashed from $1.04 to $0.827 between June 4 to June 12. Following this crash, XRP has been stuck between the 20-day and 200-day SMAs.

    Ripple Price Has Three Straight Bearish Sessions

    Since June 13, the Ripple price has been stuck between the 20-day SMA and the lower Bollinger Band as it keeps trending horizontally. The Bollinger Band has been contracting, which indicates decreasing price volatility. However, the MACD shows sustained bullish market momentum.

    Image: XRP/USD daily

    XRP/USD daily chart 061821

    In the 4-hour time frame, the Ripple price has flashed three different sell signals:

    1. XRP has managed to flip both the 20-day and 50-day SMAs from support to resistance.
    2. The parabolic SAR indicates negative market sentiment.
    3. The RSI shows that Ripple could drop some more before getting oversold.

    Image: XRP/USD 4-hour

    XRP/USD 4-hour chart 061821

    If XRP Is Deemed A Security, Ethereum Could Be Next

    In the light of the SEC-Ripple lawsuit, there have been speculations that Ether might be next in line to be branded as a security. Ripple’s motion to compel the regulator to produce internal documents relating to Bitcoin, Ether, and XRP have kindled these speculations.

    Ripple wanted the SEC to reveal said documents to reveal how the regulators came about classifying Bitcoin and Ether as currencies and why it alleges that XRP is a security. An excerpt from an earlier motion reads:

    The documents Defendants seek in this request are relevant because they show how the SEC itself has categorized and classified XRP and other digital assets, including Bitcoin and Ether, pursuant to its own policies. 

    Ripple also stated that the SEC is unclear on how its policies distinguish between securities and currencies especially concerning cryptocurrencies. The SEC and Ripple are debating two main points: whether XRP is a security and if the SEC provided Ripple with fair notice that selling XRP would be deemed a securities offering.

    The presiding SEC inspector previously clarified why he brands XRP a security but not Ether. He had said that XRP has a currency value and utility and that the utility distinguishes it from Bitcoin and Ether. 

    Ripple facilitates cross-border payments using its native token XRP to enable currency transfers. Notably, Ripple’s XRP differs from Bitcoin or Ether, two cryptocurrencies acknowledged by the SEC as non-securities, as the latter currencies are minted through the ongoing mining process. 

    Meanwhile, XRP’s supply was capped at 100 billion. Notably, Ripple holds a substantial amount of the XRP coins. The SEC claims XRP is a security, and not a currency for this reason.

    The outcome of this lawsuit will likely have ramifications for other tokens and create a precedent that other networks will follow without triggering regulatory laws. Ether, which can be argued to have a utility function, may see itself branded a security by the SEC. Ripple's Garlinghouse said: 

    This is about more than just Ripple. This is about more than just XRP. It really does have implications for all of crypto here in the United States.

    Ripple Price Is Expected To Reach These Levels

    As things stand, the Ripple price is going to keep hovering around $0.826 in the lower Bollinger Band.

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