XRP price eyes 3% drop as Ripple CEO envisions a time when Americans have new SEC chair
- Ripple price broke below the ascending trendline, interrupting a week-long recovery rally.
- XRP price could extend the fall by 3% to the $0.5442 support level before a possible pullback.
- The bearish thesis will be invalidated once the price shatters past the descending trendline to tag the $0.6500 level.
- In an interview with Fox Business, Ripple CEOGarlinghouse dissects the impact of new Bitcoin ETFs and the future of crypto regulations.
Ripple CEO Brad Garlinghouse said the US would do well with a new chair of the SEC, in so far as crypto is concerned. He highlighted that Ripple thrived under the scrutiny of the SEC but only outside the US. With the XRP ecosystem now enjoying more clarity, Garlinghouse anticipates a more expansive or open market.
Nevertheless, he acknowledged the US regulators as a constant challenge, citing hostility and enforcement through litigation. Garlinghouse called the SEC chair a political liability, meaning that a different officer would be ideal. Cognizant that crypto is a technology that is here to stay, Garlinghouse urged the agency to embrace it.
Also Read: XRP price takes a sudden downturn, nearly invalidating the uptrend noted since last week
Ripple CEO on the impact of spot ETFs on crypto
In an interview with Fox Business, the Ripple CEO called the spot BTC ETF approval “a very big deal,” adding that it is a validation for crypto from institutions and a government entity, the US Securities & Exchange Commission (SEC).
Cognizant that crypto has been on the outskirts of financial markets, the Ripple executive says that ETFs have ushered more institutions into the crypto asset market.
Ripple CEO Brad Garlinghouse breaks down the impact of the new Bitcoin ETFs and the future of crypto regulations pic.twitter.com/8McHdfijhL
— Mornings with Maria (@MorningsMaria) January 18, 2024
Further, Garlinghouse delved into how Ripple enables global financial institutions by selling blockchain technologies and solutions to them. What started as a payment solution for settling cross-border payments for banks has transformed with better speed and cost.
Ripple price outlook
Ripple price has lost the support offered by the ascending trendline, which had been nurturing XRP’s recovery rally. With the RSI below 50 and still nose-diving, the XRP price is likely going to extend the fall by 3% to tag the $0.5442 support.
Both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators are in negative territory, so the odds favor the downside.
In a dire case, Ripple price could slip past the $0.5442 support, with the potential to extend to the Fair Value Gap (FVG) between $0.4927 and $0.5111.
XRP/USDT 1-day chart
Conversely, given that XRP price recently tagged the FVG, the inefficiency in the Ripple market has been filled. This means there is no effective pull on Ripple price to the south, and the $0.5442 support could be the much-needed inflection point.
Enhanced buying pressure could see Ripple price clear the resistance due to the confluence between the ascending trendline and the horizontal line at $0.5784. This would bring the $0.6000 psychological level in sight.
In a highly bullish case, XRP price could extend the climb to collect the sell-side liquidity that resides above the trendline, potentially tagging the $0.6500 level.
In the highly ambitious case, the payment token’s market value could reach the $0.7000 psychological level, 26% above current levels.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
