It’s the weekend and cryptocurrency markets are bleeding slightly. Every cryptocurrency in the top 10 is down a few percent with XRP taking the biggest hit today, down over 4.3% in the past 24 hours. The XRP price is currently at $0.28, down from its high of $0.32 last week. Let’s take a look at some relevant Ripple and XRP news and see what the charts have in store for us.
Source: Coinmarketcap
The big news with Ripple and XRP is the recent lawsuit brought on by the SEC for allegedly violating Securities rules by selling XRP. In response, Ripple filed a motion to dismiss the lawsuit, claiming that federal regulators already determined that XRP is not a security. As Fortune reports, Ripple’s primary argument is that the lawsuit was filed too late.
This case is a big deal for the cryptocurrency community as it will either disprove or reinforce the idea that cryptocurrencies are securities. Moreover, the SEC has already agreed that Bitcoin and Ethereum weren’t securities. As such, in my opinion Ripple has a good chance of winning the lawsuit. While XRP is semi-centralized, at the end of the day it’s still a cryptocurrency just like Bitcoin and Ethereum.
Source: @nulltxmark from Tradingview
Relative Strength Index: The RSI is currently at a healthy 41 points. This means the market is neither overbought or oversold, meaning most likely XRP will continue trading sideways for the next day.
Bollinger Bands: The price is within the bands’ range, however it’s below the MA which means that there is slight room for upwards correction.
Volume: There is a good amount of volume, even for the weekend which is surprising. This means that the market has enough power to make some moves in either direction.
Both the RSI and Bollinger Bands are signalling a sideways market. However, the volume tells us that movement in either direction is not unlikely. Combine the above signals with the bearish news about the XRP lawsuit and the most likely scenario is more bearish momentum in the coming days. XRP has massive support at the $0.26 level, so my prediction is that XRP will touch that point sometime next week, and depending on any more news regarding the SEC lawsuit XRP will either rebound upwards or continue trading at that support level. I don’t see XRP dipping below $0.26 unless the SEC decides it’s a Security.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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