Home Price Analysis Ripple Price Analysis: Will bulls hold the $0.17 Support Level?

Ripple [XRP] Price Analysis: Will bulls hold the $0.17 Support Level?

Regardless of Ripple’s goals, there is always a criticizing shadow that follows them. The question in every XRP holder’s mind is whether the third most valuable coin is a security or a utility.

Understandably, regulators of certain jurisdiction have approved the creation of XRP derivatives effectively meaning the coin may be a utility—just like Ethereum and Bitcoin. The XRP ETP traded at the Swiss stock exchange is the prime example.

However, for the avoidance of doubt and despite Ripple’s alleged connection to the White House, the question is whether the U.S. Commodity Futures Trading Commission (CFTC) will lift the hang above XRP and declare it a utility. It will be a big relief.

Presently, XRP is at a cross-road and the subsequent classification is mired with confusions thanks in part to clashing opinions and secondly, the pending and yet-to be determined class action suit. In June, Chris Giancarlo argued that XRP is a utility and shouldn’t be subject to the Securities and Exchange Commission (SEC) dictates.

On the contrary, Dean Steinbeck, a U.S. Corporate Lawyer who also works with a blockchain project, opined that Chris’ argument were nonsensical and was even surprised that he could put his name on the paper.

He explained that there was a glaring clash of interest and there are indicators that Ripple—and Brad Garlinghouse, sold XRP as an unregistered security. Dean broke down all of Howey Test’s security-classifying principles and concluded that XRP is a security whose offering synced with Howey Test’s specifications.

Ripple Price Analysis

ripple 6 july 2020

Week-to-date, XRP prices are stable and straddled within a tight trading range. Held within a 2 cents range, the XRP price is up one percent in the last week, changing hands above $0.178.

Although bears have the upper hand as bear bars diverge away from the lower BB (hinting at a possible exhaustion of selling momentum), sellers will only be in charge once there is a sharp break below $0.17 at the back of high trading volumes. As it is, prices are oscillating inside June 27, 2020 bear candlestick which from an effort versus results perspective points to sellers.

For bulls to be in control, losses of June 27, 2020, ought to be reversed conclusively. That means a sharp rally above $0.185 and the middle BB (the 20-day moving average). This may unlock bulls aiming at $0.20 and later $0.25.

A firm close below $0.17 and June 27, 2020, lows may spark a wave of selling pressure with immediate targets at $0.11.


Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.

Dalmas Ngetich
Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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