Ripple is a decentralized digital payment platform that runs on RippleNet. Most large cryptocurrencies face issues regarding scalability and slow transactions. Ripple comes with the solution by providing a real-time gross settlement system. It enables transactions to any digital coins. It was created to make the decentralized financial transaction scalable and affordable.
After the US Fed interest rate hike, cryptocurrencies became the worst victim. Ripple was no different. However, it has rebounded and delivered support, but it will respond to the market’s news, especially the SEC case against Ripple.
SEC’s unwillingness to move from the previous court in relation to William Hinman’s documents is a turning point. They claim attorney-client privilege.
When a court rules in favor of defendants, it will further extend the date for more filings. The SEC requested the court to extend the timeline to file an opposition on Tuesday, and they requested a deadline of 7th June, which has affected the price of XRP.
Besides this lawsuit case, there are many reasons in the market. Though the lawsuit seems to be going in favor of Ripple, investors are worried about many other reasons, such as inflation, government bonds interest rate hike, and so on.
You should expect an outflow from the crypto market to safer government bonds for the short term. This year the price will be volatile, and Ripple will not bounce back until a final decision is announced about the Ripple-SEC case.
In the last five months, XRP USD has been consolidating within a range, but it has broken the support level this month. At the time of writing this post, it is trading around $0.388. We can consider it as a support level, but it is tough to tell how long it will sustain because the chart looks very bearish in the short term.
Only the MACD chart is bullish, but it shows a limited up move to $0.55. That is why it is not the ideal time for short-term investment. Still, if traders want to invest in XRP, click here to get more details about the future of XRPUSD.
On the weekly chart, you can find nine consecutive red weekly candles, which suggests a strong bearish momentum. RSI supports it, which is below 30, and the MACD chart.
You should not treat it as an asset until it shows any sign of recovery in the long-term chart. Cryptocurrency is a riskier asset, so it would be better if you avoid such currencies which may not provide a return in the future. Try to focus more on the top five cryptocurrencies and analyze their price daily to make a good investment decision. Please follow our website to get the latest update on the crypto market.
Source link: https://www.cryptonewsz.com/sec-files-an-extension-how-will-it-impact-the-price-of-xrp/