The central theses
- XRP has fallen more than 67% since the US Securities and Exchange Commission filed a lawsuit against Ripple.
- Despite the massive sell-off, XRP remains one of the most popular digital assets in the Asia-Pacific region.
- A candlestick close above or below the range of $ 0.26 to $ 0.28 will determine where XRP’s market value will head next.
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XRP’s value has plummeted following the SEC’s decision to indict Ripple over its token sale. However, the value of the coin could recover and it remains popular in Asia.
The value of XRP is falling
XRP took a massive 78% nosedive after rising to a high of $ 0.78 in mid-November 2020. This sell-off came after the US Securities and Exchange Commission filed a lawsuit against Ripple. The regulator claims the company raised over $ 1.3 billion through an unregistered and ongoing offering of digital asset securities.
Some of the most famous cryptocurrency exchanges in the industry have suspended XRP trading activities. Even Ripple’s founder and former CTO Jed McCaleb sold over 223 million XRPs worth nearly $ 58 million in the past week.
Although XRP made up lost ground and is now trading around $ 0.26, there is still uncertainty in the western market.
XRP / USD on TradingView
XRP has formed a descending triangle on the 4-hour chart for the past two weeks due to its stagnant price action. A horizontal retaining wall developed with the swing lows, while a sloping trendline developed with the swing highs.
An increase in selling pressure at the current price level could be significant enough to push this altcoin below the x-axis of the triangle at $ 0.26. Crossing this level of support would likely cause XRP to decline 30% towards $ 0.18.
This target is determined by measuring the distance between the widest area of the triangle and adding it to the breakout point.
XRP / USD on TradingView
However, if buy orders pile up around current price levels, XRP could continue to bounce back from losses incurred following the SEC’s indictments. Breaking the overhead resistance at $ 0.28 could propel this cryptocurrency towards $ 0.36 based on the descending triangle pattern.
Ripple is growing in the eastern markets
Regardless of the fear, uncertainty and doubt surrounding the XRP token, Ripple continues to expand its services. According to CEO Brad Garlinghouse, the blockchain company has gained 15 new customers since the SEC’s complaint.
The company’s goal now is to capitalize on the growing demand for central bank digital currencies (CBDCs) in 2021: “We are focused on addressing central bank digital currencies (CBDCs) as the future of Fiat. The key to this will be our ongoing collaboration with central banks and the development of protocols that support the direct exchange of CBDCs on XRPL using XRP as the bridge currency, ”said Garlinghouse.
Ripple has built a strong presence in the Eastern markets. Indeed, the Asia-Pacific region is one of the company’s busiest markets for both customer demand and transaction growth.
South Korea’s most popular cryptocurrencies from Messari
Although Ripple’s business appears to be booming in Asia, XRP is dormant awaiting a surge in volatility.
Disclosure: At the time of writing, this author was holding Bitcoin and Ethereum.
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