Bears regained control of Ripple’s market after a positive start trend yesterday, driving prices down 3.05% to $0.3427. The bullish attempt at a reversal was deemed ineligible after encountering significant resistance at $0.3448.This was due to the bear market’s continued dominance.
- XRP Analysis
The bear grip caused the market capitalization of the Ripple market to drop by 3.07% to $17,240,439,147. Selling pressure is seen to increase as traders leave the market out of concern for more price reductions as the 24-hour trading volume decreased by 26.67% to $883,666,283.
Technical Analysis
- XRP Analysis
Significantly, bears took control of the XRP market and pushed prices lower over the previous day after establishing a strong support level near $0.338.
The 50 SMA and 100 SMA are both below the price at which XRP/USD is now trading. Indicating that bears are in charge of the market and that a price decline may be imminent. The Relative Strength Index (RSI) score has dropped to the neutral region at 41.57. This indicates that bearish forces are in control and buyers are losing control of the market. With the signal line crossing below the MACD line, the moving average convergence and divergence (MACD) level is currently going into negative territory.
A bearish crossover will soon take place when the short-term moving average crosses below the long-term moving average. The fact that the 20-day moving average is 0.356 and the 50-day moving average is 0.35 supports this opinion. A further decline in the XRP price is anticipated because the market’s present price is below both MAs. The support level of $0.338 may be breached if the downward trend persists.
Positively, XRP’s price may shortly increase if it can get through the sturdy $0.3558 barrier. On the other hand, if it breaks through the $0.338 support level, losses might increase and even hit the coin’s recent lows of $0.3200.
Four-Hour Chart
- XRP Analysis
Analysis of the ripple price on a 4-hour chart reveals that the prices are continuously falling and were $0.3430 at the time of writing. The market has been under the influence of the bears for the previous few hours, and the short-term moving line has been sinking. The value of cryptocurrencies has suffered during the past four hours, with a noticeable price decline. Ripple’s price is therefore more likely to experience a variable shift on either extreme as market volatility is rising in response to a movement.
The SEC vs Ripple lawsuit
In preparation for the summary judgment, which will take place in Q1 2023. The US SEC and Ripple Labs have submitted their last responses. The 18th of January has been proposed as the deadline for contesting non-party sealing applications by Ripple and the SEC. The XRP lawsuit announcement will affect a lot of things.
Bottom Line
Both Ripple Labs and the U.S. Securities and Exchange Commission (SEC) are requesting that a federal judge should determine their case. Either that the crypto business connected to the XRP cryptocurrency broke federal securities laws or that the case should be dismissed without a drawn-out trial.
In the Southern District of New York, the SEC and Ripple both submitted applications for summary judgment. Requesting that District Judge Analisa Torres rule on the basis of the arguments presented in supporting documents. The records were published on Friday on a federal court’s database.
In December 2020, one day before former SEC Chair Jay Clayton announced his resignation. The SEC filed a lawsuit against Ripple Labs. CEO Brad Garlinghouse, and Chairman Chris Larsen over claims that the company had raised more than $1.3 billion by selling XRP in unregistered securities transactions. The Howey Test, which was established by the U.S. Supreme Court, in a decision that has served as a guideline for determining whether something is a security for the past few decades, was allegedly violated by XRP sales and trading, according to Ripple.
Over the past two years, the parties have filed a number of discovery motions, but they haven’t really litigated the real dispute at hand. Which is whether Ripple sold XRP in violation of the Securities Act. The motions for summary judgment signify the parties’ request for the court to determine whether the SEC or Ripple has produced sufficient evidence to conclusively establish whether there was a violation or not.
Fundamental Analysis
More opportunities in the larger crypto environment are being investigated as stable coin growth continues. The XRP ledger can accommodate a large volume of transactions that settle in a matter of seconds. Since it was designed to facilitate the tokenization of any asset.
With no need for a central middleman, issuers may easily design, issue, and manage any asset thanks to these native token capabilities. If the projected sequence of events takes place, by the end of 2023. The likelihood of the Ripple price prediction reaching a new high is then considerable.
A new maximum value could also form, and the price could move closer to its $1.1043 annual closing goal. If the lawsuit were to have no effect, the normal pressures of buying and selling would prevent the price from falling below $0.8486.
However, the altcoin would wind up trading at $0.5. This is if the SEC pursues the action any further or if a decision is made against XRP.
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