XRP Price Analysis — Another Drop May Be Approaching
Last week, Bitcoin and Ethereum reached new all-time highs, and the price of Ripple reached 1.96 USDT per coin. It was the first time since the all-time high in 2018. However, on the same day, a correction began, the XRP/USDT first sank by 20%, and by the end of the week by 35% and is currently trading near the $ 1.4 mark.
Ripple began to move north at the beginning of the month and in two weeks its price increased by 330%, and since the beginning of the year, when the XRP/USDT was trading near the $ 0.2, the increase was 900%!
The main impetus for the growth of the XRP/USDT was a series of legal victories for Ripple in the battle with the US Securities Commission. One of these victories was the closure of the Ripple and Tetragon case. In addition to the decision to dismiss the claim filed by Tetragon Financial Group, one of the largest investment firms in England, it was also decided that Tetragon would cover millions of dollars in legal costs.
The US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in the last month of 2020. Claiming that Ripple sells securities and XRP is a security, Tetragon demanded a full return on investment.
Tetragon, which co-sponsored and led the Ripple Series C funding in 2019, did not receive the desired response.
Ripple CEO Brad Garlinghouse, in a statement at the time, stressed that it was a very opportunistic move and criticized Tetragon.
The trial court recently ruled against Tetragon. The reason for the court’s decision to discontinue the case is that it has not yet been decided whether XRP is a security or not.
Despite another Ripple victory in court, DCG Group CEO Barry Silbert said during an interview that it would be risky for exchanges and companies in the United States to re-expose XRP pending SEC approval. These remarks may have contributed to the unprecedented liquidation of long positions on April 14, on the derivatives exchanges in the amount of $ 420 million.
But there was good news. On April 15, Heco announced the achievements of a strategic partnership with the XRP ecosystem. XRP is now successfully connected to the Heco network. Users can directly connect to Heco through Huobi’s global deposit and withdrawal portal. XRP will reportedly act as a DeFi asset and will gradually open up various use cases on the Heco network, including DEX trading, lending, and liquidity mining.
As for the forecasts for the coming week, the current price decline is more likely the beginning of a correction than a rebound and continued increase.
On the daily chart, the technical indicators show the presence of a bearish trend. The MACD histogram on the daily chart is declining and may soon move from positive to negative zones, signaling further price decline. And the RSI indicator crossed the resistance level from top to bottom and is near the 60% mark.
On the weekly chart, the MACD indicator is still growing, while the RSI began to decline and approached the resistance level. It is not yet clear whether it will move further down, crossing the resistance level, or turn back to the north.
Of course, the uptrend is strong and the possibility of continued growth remains. Nevertheless, those who hold Long positions may need to consider the option of closing such a position in order to avoid large losses in the event of a further decline.
Well, for those who were expecting a decline in the XRP/USDT in order to purchase the coin at the best price, such an opportunity may appear in the near future.
Disclaimer
The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client’s account should or would be handled, as appropriate investment strategies depend upon the client’s investment objectives.
