Ripple Technical Analysis: XRP Moves Sluggishly Below $0.25 Psychological Level

Last Updated July 23rd 2021
6 Min Read

Daily Ripple XRP Price Analysis
  • XRP is going through a period of heavy consolidation.
  • Ripple supporters are filing a petition to the White House to declare XRP a currency.

Unlike its peers, Ripple has been going through an absolute nightmare. Ever since news broke out about the potential SEC lawsuit, the price has gone through an unenviable slump. As things stand, XRP is trending horizontally below the $0.25 psychological level.

 

Ripple’s Price Action

After facing rejection at the 20-day SMA the cross-border remittance token crashed from $0.585 to the $0.256 support level. The buyers attempted to salvage the price by pushing XRP above the 200-day SMA. However, the sellers then took back control and pushed the price down from $0.34 to $0.21.

xrp/usd daily chart 010421

Image: XRP/USD daily chart

The relative strength index (RSI) is trending along the edge of the overbought zone. To better understand this lack of price volatility, we should look at the 4-hour chart. The Bollinger Band has constricted considerably, which indicates decreasing price volatility. 

xrp/usd 4-hour chart 010421

Image: XRP/USD 4-hour chart

This usually indicates that the price is going through a consolidation period before it explodes either upwards or downwards.

 

Ripple Supporters File Petition To Declare XRP A Currency

A group of XRP supporters has filed a petition recently to force the hand of the White House on the allegations made by the Securities and Exchange Commission (SEC) against Ripple. 

The petition titled “We the People ask the federal government to deem XRP, the virtual currency, a currency” has been collecting signatures from Ripple supporters. The petition argues that the SEC has “filed a frivolous action claiming the cryptocurrency, XRP, which has already been deemed a currency by FinCEN, to be a security.” 

An excerpt from the petition reads: 

Due to this action, the 40 billion dollar market for the currency is rapidly failing as companies scramble to maintain compliance. Billions of dollars of value is being wiped from the market in rapid succession and most critically, hundreds of thousands of ordinary Americans – the very Americans that the SEC is tasked to protect – are suffering irreparable harm and damages.

The petition is created by a person using the initials JW. It needs a total of 100,000 signees to receive a response from the White House. The petition ultimately demands the White House to “cease immediately” the SEC complaint as it is “damaging to the holders of the currency XRP.” 

 

Investors To Take Legal Action Against SEC

XRP holders have also recently filed a petition alleging that the US Securities and Exchange Commission (SEC) failed to protect investor interests’ by declaring XRP a security. The petition has been filed in the US District Court of Rhode Island against the SEC’s acting chairman, Elad Roisman. 

As per the petition, the SEC harmed XRP investors by declaring the asset a security in its lawsuit against Ripple. On December 22, the Commission announced in an official complaint that Ripple sold unregistered securities to investors in the form of XRP. Meanwhile, multiple cryptocurrency platforms have halted or suspended the token trading, causing the asset’s price to drop. 

John E Deaton, the lead petitioner and XRP holder, said: 

The Writ is asking the SEC to exclude calling our XRP securities. 

Furthermore, the petitioners argue that declaring the token a security seven years after the first distribution calls into question the SEC’s exercise of its discretion. The petition notes that SEC ex-chairman Jay Clayton had not clarified the commission's stance on XRP despite being asked many times.  

An excerpt from the petition reads: 

As chairman of the SEC, it was Jay Clayton’s (Clayton) fiduciary duty to enforce the SEC mission statement. Instead of protecting investors and sharing information to help investors make informed decisions, the Respondent [SEC] knowingly and intentionally caused multibillion-dollar losses to innocent investors. 

If granted, the writ will attempt to prevent SEC’s continued action over the token's legal status. 

 

26 Crypto Platforms Drop Support for XRP

According to analyst Leonidas Hadjiloizou, 26 companies have changed their policies surrounding XRP in response to allegations that XRP may be an unregistered security. 

Each cryptocurrency platform has adopted unique parameters about the sale or exchange of XRP. Some firms have removed support for the digital asset only on their US platforms. A few others have suspended trading for XRP globally. While some cryptocurrency exchanges have delisted the asset, others have halted or disabled XRP trading. 

Crypto exchanges such as Bitstamp, Abra, and eToro, and crypto market maker B2C2 have suspended trading for XRP in the US only. Exchanges such as Coinbase, Beaxy, OSL, OKCoin, Ziglu, and iTrustCapital are suspending trading for Ripple’s native asset as well. Still, they are choosing to do so across all countries in which they operate. Binance US, CrossTower, Crypto.com, and Bittrex have delisted the asset. 

Crypto payments firm Simplex is blocking XRP transactions globally while payments company Wirex is excluding XRP payments only in the US. Brokers Genesis Trading and Bitcoin Suisse have removed support for XRP entirely. 

A few platforms are facing legal issues because of their previous XRPsupport. Coinbase, for instance, has been alleged that it sold XRP despite knowing that it was an unregistered security.

 

Key Price Levels To Watch

Having flipped the $0.256 line from support to resistance, the price now has only one viable support wall at $0.17. If the price breaks below that, it could be completely catastrophic for XRP. On the upside, the buyers can take back some semblance of control by flipping back the $0.256 line from resistance to support.

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