On Sunday, the whole crypto market plunged again - Bitcoin declined as low as $33,400, ETH dropped below $2,100, and XRP hit $0.70.

The price dip in the crypto market also triggered a reduction in market capitalization, which was near the $ 1.400 trillion mark over the weekend, and Ripple's share is 2.37%.

In total, from mid-April, when, having reached the maximum, the Ripple price began to decline and to date, the XRP / USDT pair sank by 62%!

It is also worth noting that 2021 was not an easy year for Ripple due to the persecution (SEC) of the United States. So, at the end of 2020, it became known about the impending lawsuit against the company in which the SEC was going to accuse Ripple of selling securities, which, in its opinion, are XRP tokens, without the necessary license for this. Further, there was a fluctuation in the price of XRP, to a greater extent, depending on how the company was doing in court.

After Ripple filed an official response to the US Securities and Exchange Commission (SEC) amended lawsuit during the ongoing litigation, it also stated that Ripple estimated the losses of "those whom the SEC should protect" at $ 15 billion. At the same time, the SEC accuses Ripple of illegal sale of securities worth $ 1.3 billion.

When SEC discovered that hundreds of millions of XRP tokens had been transferred to the accounts of unregistered US crypto exchanges. The SEC approached nine foreign regulators with a request for documents from 14 trading platforms and five companies. Two departments refused to help the American authorities, three refused to disclose the details of the discussion. The others rejected the request.

And by the way, about the regulators, whose actions still occupy not the last place in the list of possible reasons for a large-scale correction of the crypto market.

Technical Analysis

As for the forecasts for Ripple for the next week, a breakout of support is more likely than a rebound from it. This is indicated in particular by indicators on both daily and weekly charts.

On the weekly chart, XRP is just one step away from the south crossing of the support level. At the same time, the MACD forms a "Death Cross", and the histogram also indicates the presence of a downtrend, while the relative strength indicator, moving down, has already turned out to be below the neutral zone.

The MACD histogram on the daily chart, which was in the positive zone most of the time while the price was moving in a narrow corridor, has now made a transition to the zone with a minus sign. And the signal line of the RSI indicator has almost touched the support line.

If the XRP/USDT ultimately ends up below 0.6500, and the RSI signal line on the daily chart crosses the support line from top to bottom, a further drop will not be avoided.

Disclaimer

The material herein is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell cryptocurrencies or derivatives. The material is not intended to be used as a general guide to investing, or as a source of any specific investment recommendations, and makes no implied or express recommendations concerning the manner in which any client's account should or would be handled, as appropriate investment strategies depend upon the client's investment objectives.