In the last two years, we have seen several developments related to the lawsuit and its influence on XRP price, but it can be delayed until 2023. As a result, the altcoin XRP continues its downtrend.
Ripple aims to serve as a digital asset for global payments. XRP is the native coin of the Ripple Labs network, and it focuses on real-time payment settlement for financial institutions. In the last ten years, more than 100 companies have adopted Ripple software for faster and more secure transactions. Unlike Ethereum, it does not have a blockchain network, and it has an XRP ledger, a blockchain-like network that facilitates payments.
The Security and Exchange Commission (SEC) is a ‘regulation by enforcement’ authority it works as a financial watchdog. This lawsuit led to the delisting of XRP coins in many cryptocurrency exchanges. Now more than 60,000 XRP holders are willing to provide testimony that contradicts SEC’s claims against Ripple. SEC claimed that Ripple failed to register investment contracts required by the Security Act. On the other hand, the Ripple team raised a fair notice defense.
At the time of writing this analysis, XRP/USD has broken a strong support level of around $0.69 and trading around $0.65. We think it will go down, and $0.59 will be the next support level. In the last five months, it has been consolidating within a range of $0.68 and $0.88. Now it has broken the support level. That is why we have to analyze the technical indicators to get a long-term and short-term view.
On the daily chart, RSI is in the oversold zone, and MACD is also bearish. Interestingly candlesticks have broken the lower line of the Bollinger Band, and all these technical indicators suggest extreme bearishness in the market.
Even on the weekly chart, $0.59 is a strong support level. We do not think it will break that level soon, so, based on the analysis and the XRP prediction, it can be a good time to accumulate some coins for the long term.
On this chart, most of the technical indicators are bearish. That is why it is not the ideal time for short-term investments, but if you want to hold it for five or ten years, you can start accumulating some coins.
Please invest the amount you can afford to lose because if it goes down, you need to buy more to average the price. The price can be volatile in the short term, and that is why you should keep a closer eye on the price.
