XRP price, unlike the bullish Bitcoin and Ethereum, is still sinking in the red. While the largest crypto BTC is up 1.4% on Tuesday and trading at $26,800, XRP is facing up to 2.1% in losses. ETH, on the other hand, dodders at $1,730 with its price staying relatively unchanged in 24 hours.
Attempts to push above $0.5 have been spectacularly futile with the token’s upside capped under the 100-day Exponential Moving Average (EMA). As overhead pressure intensifies into the European session, XRP price is trading at $0.4848.
The nearest support at $0.48 is expected to come in handy, but if push comes to shove, investors may want to start acclimatizing to losses as far as $0.4450 – its lowest point in June.
Beyond the Ripple vs SEC Lawsuit – CEO Garlinghouse Fights for Regulatory Clarity
Ripple’s CEO Brad Garlinghouse, who was also sued alongside his company by the Securities and Exchange Commission (SEC) for allegedly selling XRP as an unregistered security offering, continues with his battle for regulatory clarity in the US.
In a video shared on Twitter Garlinghouse blasted the SEC for acting in “bad faith, plain and simple.” His remarks came after the release of the Hinman documents, which, the company’s legal representatives hoped would provide clear context on why Ethereum is not considered a security token.
Trying something new – some thoughts from me on the events (specifically the release of the Hinman documents) of this week. For me, this has all had a personal bent to it – and felt like it warranted some personal comments. pic.twitter.com/k4dYeQGhsN
— Brad Garlinghouse (@bgarlinghouse) June 16, 2023
He opined that the Hinman documents implied that the SEC “knowingly created confusion about the rules, and they used that confusion through enforcement.” Ripple’s CEO has for a long time criticized the agency for its regulatory-by-enforcement approach.
Garlinghouse’s opinion stands that the SEC is out to “stifle” innovation and quash the growth of the cryptocurrency sector within the U.S. The focus, he argues, isn’t on any specific digital currency or blockchain technology. Instead, the crux of the matter lies in the overarching approach the SEC has adopted concerning the cryptocurrency landscape.
He stressed the importance of unity within the industry, warning that the SEC might potentially extend its regulatory enforcement to more crypto enterprises down the line.
“Ultimately as our lawsuit comes to a close, for so many others it is just starting, so the fight for clarity has to continue” Garlinghouse stated.
XRP Investors Feel The Pinch As $0.5 Becomes Elusive
Many investors believed the XRP price drop below $0.5 was temporary and that it would trigger a knee-jerk recovery reaction. The pullback to $0.4575 occurred shortly after the unsealing of the Hinman speech documents. Hence, there was reason to believe XRP still had the momentum to reclaim resistance at $0.5 as well as push to $0.56.
If declines continue unabated, the Moving Average Convergence Divergence (AMCD) would validate a sell signal. Investors looking forward to short positions in XRP may want to wait until the MACD line in blue crosses below the signal line in red.
As mentioned earlier, there is a possibility that XRP will bounce off short-term support at $0.48. However, the most critical support, and one that must be defended at all costs lies with the lower ascending trendline.
Breaking and holding below that trendline would drastically change the dynamics for XRP and make it challenging for bulls to push for an immediate recovery. That said, the path with the least resistance is to the upside.
However, traders can prepare by closely watching the support at $0.48 and the ascending trendline. On the upside, resistance at $0.5 must come out of the way to pave the way for near-term gains to $0.56 and the ultimate climb to $1.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
