XRP has seen some extremely bearish price action since late, with the selling pressure seen over the past 48 hours coming about due to news surrounding the SEC’s claim versus Ripple –– the San Francisco-based FinTech startup that is closely connected to the cryptocurrency.
The suit claims that XRP is an unregistered securities item that the business has utilized as a fundraising mechanism and information the company’s previous quarterly token dumps that have actually been extensively viewed as the main reason its rate was so flat over a multi-year duration.
Where the cryptocurrency trend next will likely depend upon its response to an essential support level, which seems on the cusp of being broken.
One trader believes that an impending break listed below this level could cause an extreme downtrend that sends its rate down towards $0.20.
Some major funds like Bitwise have even liquidated their XRP positions, and there is a growing possibility that exchanges like Coinbase will likewise delist the cryptocurrency in the days and weeks ahead.
This could develop true panic offering that sends its price cratering to new multi-year lows.
XRP Price Crashes as SEC Woes Rock Investors
XRP had actually been on a massive run before the SPARK airdrop, with its price reaching highs of $0.90 on Coinbase and other exchanges before it lost all its momentum and plunged towards $0.60.
It consolidated here for a while prior to the SEC news hit, which sent the cryptocurrency’s rate tanking down to lows of $0.30 that were set overnight.
It is now trying to hold above this level at its existing cost of $0.31. It is not likely that it will find any significant buy-side support in the near-term, nevertheless.
Expert: $0.20 a Likely Target for the Embattled Token
One trader stated in a current post that he expects XRP’s rate to tank even further in the near-term, keeping in mind that $0.30 is the last crucial support before $0.20.
Due to the fact that the buy-side pressure is diminishing, there’s a strong possibility that it will see additional near-term downside in the days to come.
“& ldquo; XRP– 30 cents is an important level that requires to hold otherwise I think this drops to 20 cents –– 2020 annual open. No position in XRP –– not interested unless it drops much lower.”
& rdquo; Image Courtesy of TraderXO. Source: XRPUSD on TradingView.
The coming couple of days ought to shed some light on XRP’s technical fate, as a wave of exchange delistings coupled with unlimited sell-side pressure could trigger it to set multi-year lows.
Featured image from Unsplash. Charts from TradingView.