- Ripple price slides under $0.24 support amid widespread crypto selloff before the weekend.
- A forming falling wedge pattern could save the bulls from the turmoil as recovery targets $0.35 and $0.40.
- XRP's future remains uncertain after a US court upheld a class action case against Ripple.
Ripple price alongside other cryptocurrencies has had a rough week, to say the least. I had reported that the crypto market was grinding north on Friday last week. While it did hit high levels over the weekend, losses have dominated the crypto space since Monday.
XRP/USD is currently valued at $0.2351 after dropping 1.36% on the day. Looking back, the third-largest crypto hit high new 2020 highs at $0.3465 earlier in February. The drop continues to destabilize the bulls because if they don’t take precaution XRP could dive to levels close to $0.20, further jeopardizing the desire to rise $0.50 in the near future.
The other major digital assets, Bitcoin and Ethereum have not been spared the ax. Bitcoin for the first time in February dropped under $9,000 to test support at $8,500. Great risks still befall Bitcoin's recovery towards $9,000, although it currently trades at $8,730. On the other hand, Ethereum is trading at $224 after failing to break the resistance at $235 ahead of the weekend session.
Crypto Industry Overview: Holding XRP just became a lot more riskier
On Wednesday a United States federal district court judge ruled against Ripple in a motion to dismiss a class-action case filed against it. Judge Phyllis Hamilton of the Court of the Northern District of California ruling in the case that seeks to have XRP identified as a security token said that the motion could not be dismissed because Ripple is still selling XRP.
XRP future remains uncertain
Ripple will continue to battle in court in order to clear doubts that XRP is not a security. The US regulators including the Securities and Exchange Commission (SEC) have remained vague on their stance on whether XRP is a security or not.
Meanwhile, Ripple’s failure to redeem itself from the lawsuit ensures that a cloud of doubt continues to hover around it. This is likely to jeopardize XRP performance in the future. Even with the slightest insinuation that XRP is a security token and especially with Ripple’s periodic sale of tokens and the plans to go public in an initial public offering (IPO), investors are likely to panic resulting in a drop in XRP's value.
MoneyGram expands of use XRP and RippleNet
Ripple’s strategic partner, MoneyGram is expanding the use of Ripple’s RippleNet and XRP for both corporate and personal account transfers. Alex Holmes, the CEO of MoneyGram in a new earnings call this week, said the payments guru will be launching more corridors supporting XRP remittances. MoneyGram will also tap into RippleNet for account-to-account transfers.
I’m also excited to announce that we are working to integrate RippleNet for account-to-account transfers in 2020. This new integration will further accelerate our progress in accomplishing our vision of real-time global settlements.
MoneyGram's uptake of Ripple services is increasing demand for XRP. Mainstream adoption remains a problem for many cryptos. However, as people find it easier to send funds internationally using XRP, demand is bound to increase and eventually lead to growth in terms of token value in the future.
Ripple Price Forecast: XRP/USD falling wedge pattern breakout lingers
The continued downtrend is leading to the formation of a lower low and a lower high pattern. If this scenario continues, the bulls are likely to bleed further. In other words, XRP/USD is searching for credible support; a zone where most buyers are willing to enter the market and bet on the price rising not only above $0.30 but also beat the yearly high with a surge towards $0.40.
The 2-hour chart shows Ripple price trading below the 50 SMA and the $100 SMA. The downtrend is likely to retest $0.22 support. Bearish momentum is supported by the RSI’s dip under 50 (average) and towards 30 (oversold). Meanwhile, XRP/USD RSI is not oversold (in the 2-hour short timeframe), if the bulls do not pull above $0.24 soon, there is still enough ground to cover downwards before oversold levels are reached.
XRP/USD 2-hour chart
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