The Ripple price may be recovering. The path of least resistance could be on the upside given the project’s numerous fundamentals that scream “buy.”
Still, prices are capped, dragging investors’ hope as XRP oscillates within a tight trade range.
The XRP security or utility question
Presently, what’s trending is XRP’s classification. As the third most valuable coin with millions of investors, U.S. regulators find themselves in a precarious position.
One, some investors are truly committed to the project, sinking millions of dollars into Ripple since they believed in their vision mission statement. On the other hand, there are retail investors, clipping the market and lining up their pockets from XRP’s volatility.
If the U.S. SEC classifies XRP as a security, prices will undoubtedly sink, crashing investors in a wave that will have a domino effect on the crypto market.
Therefore, moving on, Ripple must argue their case right (considering the class-action suit that’s pending in a U.S. Court). Their distancing away from Ripple Labs—the official issuer of XRP, is already the first cushion just in case there is a turn for the worst.
India has no legal framework
Meanwhile, developments in India, Ripple’s executive argue, is retrogressive. When the RBI banned crypto trading in the Asian economic powerhouse, they killed innovation.
The Supreme Court of India may have lifted the ban but the absence of a framework means it will take years for cryptocurrencies to be adopted.
In an interview with Forkast News, they asserted that a legal framework must be created for banks and institutional investors to indulge in cryptocurrencies.
Ripple price analysis
In the daily chart, the Ripple price is consolidating. Candlestick arrangements suggest that while bears might be in control, in the immediate-term, XRP bulls might muscle control.
Advising this is a series of higher highs from the lower BB and the lack of a follow through on June 27, 2020, bear candlestick. The $0.17 support level is, therefore, valid.
Nonetheless, bears are largely in control due to the failure of XRP bulls to close above the 20-day moving average (the middle BB).
Besides, the Ripple price is still oscillating within a descending channel as prices move within June 27, 2020, high low.
A break below $0.17 may spark a wave of liquidation back to $0.11. On the reverse side, a sharp close above the 20-day moving average, $0.18, and $0.20 may pump the Ripple price back to $0.25.
Technical chart courtesy of Trading View
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.