- The 20-day SMA has continued to provide healthy support.
- XRP in the 4-hour chart has broken below two crucial levels.
Looking at the daily Ripple price chart, the bears have been in control for six out of the last seven sessions. During this time, XRP has plummeted from $1.62 to $1.46. This Tuesday, the buyers actually attempted a valiant comeback, before the sellers took back control.
20-day SMA Proves Critical For Ripple Price
The 20-day SMA has been absolutely critical for the Ripple price so far. At least three times over the last ten days, this support wall has stepped up to the plate to prevent a drastic crash. The overall sentiment is very bearish. Firstly, the MACD shows increasing bearish market momentum, while the parabolic SAR has flipped from positive to negative.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has had quite an eventful time. Firstly, it climbed from $1.385 to $1.54, crossing above the 20-bar, 50-bar, and 200-bar SMAs. Secondly, it flipped the parabolic SAR from negative to positive. However, the bears instantly took control and gained back the 20-bar and 50-bar SMAs as resistance levels. As things stand, the 200-bar SMA is stopping a further downtrend.
Image: XRP/USD 4-hour
Is the SEC Hurting The Same Community It Vows To Protect?
XRP's legal status as an asset or a security has remained the prime focus of the ongoing SEC-Ripple lawsuit. SEC Commissioner Hester Peirce had previously criticized the "Howey test" used by the Supreme Court to determine whether an asset is a security. According to her, the Howey Test poses some problems when applied to the digital currency industry.
It appears that there is an urgent need for clear cryptocurrency regulations. This has been highlighted by Stuart Alderoty, Ripple’s General Counsel, on multiple occasions. According to Alderoty, the "environment of regulatory uncertainty" in the US is a major cause of concern. He stated:
America’s regulation by enforcement strategy is already driving innovators away to countries like Japan, Singapore, the UK, and Switzerland that has established a clear regulatory framework for crypto. The U.S. is creating uncertainty that hurts markets and consumers while hampering the drive for innovative new approaches to cross border payments, financial inclusion, and more.
Ripple CEO Brad Garlinghouse has also been voicing his unease with the lack of regulatory clarity in the US way before the trial commenced. However, the growth of Ripple appears to be unaffected by the lawsuit.
Data shared by the firm indicated that Q1 2021 was a quarter of XRP accumulation. The number of “whale” wallets, defined as wallets with balances of at least 10M XRP, increased from 308 in Q4 to 319 in Q1. The number of wallets holding between 1M and 10M XRP also surged from 1,125 to 1,196.
Furthermore, interest in XRP has also more than doubled, as indicated by Google trends.
Ripple Price Is Expected To Reach These Levels
The buyers will have to take advantage of the 20-day SMA and the 200-bar SMA in the 4-hour chart to bounce up. As things stand, our verdict remains the same. Ripple needs to reconquer $1.65 resistance at all costs.