Ripple Technical Analysis: XRP Blocked By The 200-day SMA As Lawyers Prepare To Fight SEC
Daily Ripple XRP Price Analysis
- Ripple is trending along horizontally at $0.295.
- The Bollinger band in the 4-hour chart shows low price volatility.
Ever since January 7, Ripple has been trending along horizontally around the $0.295 level. Ripple crashed towards the end of 2020 due to the SEC lawsuit. It looks like Ripple is gearing up for a fight back. We will look into it a little later. But first, let’s do a technical analysis.
Ripple Price Blocked By 200-day SMA
Ripple price upside is currently severely limited by the 200-day SMA. The 20-day SMA also sandwiches XRP in the downside. As things stand, the relative strength index is trending horizontally below 50, giving the buyers enough room to grow if they retake control.
Image: XRP/USD daily chart
The Bollinger Band in the 4-hour chart has constricted considerably. This shows that current price volatility is extremely low. As such, the price is going through a consolidation period before it goes through a price swing.
Image: XRP/USD 4-hour chart
Lawyers Getting Ready To Battle SEC’s Case Against Ripple
A total of 21 lawyers are all set to fight the lawsuit initiated by the US Securities and Exchange Commission (SEC) against Ripple and two of its executives. Of the 21, four lawyers represent Brad Garlinghouse (Ripple’s CEO), four representing Chris Larsen (Ripple’s co-founder), and 13 will be working for the payments company itself.
The SEC has alleged Ripple of selling XRP tokens as unregistered securities. As mentioned earlier, the agency recently announced that Marc P Berger, the acting director of the SEC’s Division of Enforcement, will be stepping down soon.
Berger took action against several companies apart from Ripple. A few such companies include Robinhood, Credit Suisse Securities, the New York Stock Exchange, JP Morgan Securities, Deutsche Bank AG, General Electric, Hertz, and Telegram. According to a few reports, President-elect Joe Biden is likely to pick Gary Gensler as the SEC's next chair.
Ripple Price is Expected To Hit What Level?
We can expect Ripple to keep trending around the $0.295 level as the price goes through low volatility.