It’s Monday and the beginning of a new week. Most cryptocurrency markets are still trying to recover from this weekend’s downhill slide with Litecoin up over 2% in the past 24 hours, showing first signs of life. Ripple’s XRP price is down 2.8% after breaking down through the $0.28 support. With the recent news about the SEC suing Ripple Labs over its XRP sale, this bearish momentum is not unexpected and unfortunately may last for quite some time. Let’s take a look at any new developments for Ripple and XRP, and let’s also take a look at the charts to see what they have in store for us.
Source: Coinmarketcap
As mentioned in my previous XRP price analysis, the biggest news surrounding Ripple and XRP is the SEC lawsuit brought on against Ripple labs for allegedly selling securities. In response, Ripple has filed a motion to dismiss on the grounds that the lawsuit came too late and the SEC has already decided that XRP was not a security to begin with.
In other more positive news, MoneyGram CEO Alexander Holmes showed excitement about the Ripple platform and what it can do for their platform. MoneyGram is banking heavily on Ripple, so much so that when the company communicated their endeavor into integrating with distributed ledger-based transfers, their stock price soared by over 160%.
Chart: @nulltxmark from Tradingview
Relative Strength Index: The RSI is currently at a healthy 45 points. It has stayed mostly within range the past week meaning that the same trend will most likely continue. Even through the RSI is healthy, the market still seems to be on a downward trajectory.
Bollinger Bands: The price is currently within the bollinger bands after crossing below the lower band a few hours earlier. We have been seeing the price continue to gravitate toward the lower band since it has been on a bearish move ever since peaking at $0.32.
Volume: It looks like the volume is starting to pickup compared to what it was last week. Moreover, with the new week ahead of us we should expect an increase in volume in the next 24-48 hours.
The RSI is healthy, the price is within the BB range and volume is low. This usually means that the market will continue to trade sideways. However, if we look at the big picture and take into account current events, we can see the market is definitely in a bearish phase. Moreover, XRP was unable to hold the $0.28 support level and is currently looking for a new level.
In my yesterday’s XRP price prediction, I predicted that:
“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.”
It looks like this is exactly what’s happening as XRP will most likely test the $0.26 support sooner than I expected. My prediction for today is that XRP will touch the $0.26 level and bounce up to $0.27 or $0.28 from there. The SEC lawsuit is sure to bring bearish pressure, but at the end of the day their lawsuit doesn’t have effect on the tech behind XRP, which is what gives the currency most of its value.
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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