- XRP faces many resistance levels above $0.304.
- XRP is currently deemed a security by the US SEC, while the UK Treasury considers it an “exchange token.”
- XRP is trading in a very tight range, which may soon cause a price explosion to either side.
XRP has been in a slow uptrend in the past two days despite the SEC lawsuit looming over the project and its founding company’s top executives.
XRP has, despite the US Securities and Exchange Commission calling it a security, been on a steady rise for the past couple of days. It is currently trying to tackle the $0.304 resistance level.
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Fundamental analysis: is XRP a security, or is it not?
XRP is a cryptocurrency that runs on top of the RippleNet platform. RippleNet is built on top of the distributed ledger database known as XRP Ledger. The whole ecosystem was created by Ripple to be a speedy, cheap and more scalable alternative to both other cryptocurrencies and existing monetary payment platforms such as SWIFT.
The main reason for XRP not “going to $0” as some people have predicted is because people still believe that XRP is not a security. Well, that might be correct and incorrect at the same time. While the US SEC currently thinks that XRP is a security, the UK Treasury came out with a document stating that XRP is an “exchange token” rather than a security. This means that the government of the United Kingdom put XRP alongside other cryptocurrencies, such as Bitcoin and Ethereum.
Another argument for why XRP’s price didn’t drop even further is that many analysts with the background in law came out, stating that the US SEC doesn’t exactly target XRP as a cryptocurrency, but rather Ripple’s top executives and how they operated the company in the early stages of XRP development.
At the time of writing, XRP/USD is trading for $0.303, which represents month-over-month gains of 16.59%.
XRP/USD technical analysis
XRP has been trading in a descending trend ever since the US SEC publically announced that it would sue XRP for issues regarding it being deemed a security. While the cryptocurrency is still trading within the descending trend, its price has seemingly found its bottom and started slowly moving up. XRP is currently fighting to push above the top (black) line of the descending trend, as well as above the 21-day and ultimately 50-day EMAs. This will be an extremely tough job, especially as XRP is not exactly bullish at the moment.
XRP faces a strong resistance level right above it, where it faces the 21-day EMA. Right above it, it will face the descending black trend line as well as the 50-day EMA. When it comes to the downside, XRP has many small support levels as well as the descending bottom trend line.
XRP/USD daily chart
XRP’s RSI on the daily time-frame was hovering near the oversold area for a long time before returning back to average levels. Its RSI currently neutral, with a value of 45.98.
XRP/USD 1-hour chart
XRP’s hourly time-frame shows us how XRP is currently fighting to push above the $0.304 level. With the 21-day EMA right above it and the 21-hour and 50-hour EMAs below it, XRP is trading in a very tight range which may explode to one side or the other very soon.