Breaking: Ripple states that regulation shouldn’t be a guessing game, XRP looks poised to retrace
- Brad Garlinghouse has condemned the lack of regulatory clarity in the U.S.
- XRP’s price rejection from a crucial pattern indicates the digital asset is primed to retrace.
In a statement on Twitter, Brad Garlinghouse, the CEO of Ripple, discussed the current regulatory framework in the U.S. Ripple is a US-based company, and Garlinghouse clearly states that the company is looking to comply with all regulations and laws, however, the lack of clarity is still there.
Last week’s DOJ report lists 8 separate US reg bodies each with a different view: crypto is property, crypto is a commodity, crypto is a virtual currency, crypto is a security, etc. Regulation shouldn’t be a guessing game.
Lots of speculation last week as Team @Ripple considers some very important decisions about our future. I want to clarify a couple of things related to some of what I read. (1/5)
— Brad Garlinghouse (@bgarlinghouse) October 12, 2020
Garlinghouse also stresses the fact that many US regulators are actively favoring Chinese technologies over US companies, warning that if Ripple has to move to another country, it will do so.
XRP is the biggest loser
While major cryptos like BTC and ETH had significant rallies, XRP was left behind at a crucial point.
XRP/USD daily chart
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The descending parallel channel formed on the daily chart has been the most critical pattern for XRP. It seems that the price got rejected again from the upper boundary of the channel while the TD sequential indicator presented a sell signal at the same time.
For now, the 100-SMA and the 50-SMA are acting as support levels, however, a bearish breakout below both moving averages would take XRP down to $0.23 in the short-term and as low as $0.2 to re-test the lower boundary of the pattern.
On the other hand, if both SMAs continue holding the price and bulls can push it above the upper boundary of the channel, the bullish breakout would be enough to drive XRP up to $0.30.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
