XRP has seen some incredibly bearish price moves lately. The selling pressure in the past 48 hours is due to news of the SEC’s lawsuit against Ripple – the San Francisco-based fintech startup closely linked to the cryptocurrency.
The lawsuit alleges that XRP is an unregistered securities product that the company has used as a fundraising mechanism, and it lists the company’s previous quarterly token dumps that were widely believed to be the primary reason the price was over a Period of several years was so low.
Where the next trend in cryptocurrency is likely to depend on its response to a major support level that appears to be on the verge of breaking.
One trader believes that an impending break below this level could result in an intense downtrend that brings its price towards $ 0.20.
Some big funds like Bitwise have even liquidated their XRP positions, and there is a growing likelihood that exchanges like Coinbase will delist the cryptocurrency as well in the coming days and weeks.
This could lead to a real panic selling pushing its price craters to new multi-year lows.
XRP Price Crashes As SEC Rock Investors Suffers
XRP had a massive run before the SPARK air drop. Its price hit highs of $ 0.90 on Coinbase and other exchanges before losing momentum and falling towards $ 0.60.
It consolidated here for a while before the SEC news hit that the price of the cryptocurrency dropped to lows of $ 0.30, set overnight.
It is now trying to stay above this level at its current price of $ 0.31. However, it is unlikely to find any major buy-side support in the near future.
Analyst: $ 0.20 a likely target for the contested token
A trader said in a recent post that he expects the price of XRP to rise even further in the near future, noting that $ 0.30 is the last major support ahead of $ 0.20.
As the pressure on the buy side eases, there is a high probability that there will be more short-term downward moves in the coming days.
“XRP – 30 cents is a critical level that has to be maintained, otherwise it will drop to 20 cents in my opinion – open 2020 annually. No position in XRP – not interested unless it drops much deeper. “
Image courtesy of TraderXO. Source: XRPUSD on TradingView.
The coming days should shed some light on the technical fate of XRP as a wave of stock market listings coupled with endless pressure on the sell side could cause XRP to hit multi-year lows.
Featured image from Unsplash. TradingView charts.