- Ripple price has formed a triple top pattern on the 4H chart.
- The SEC vs Ripple case is dragging on in the United States.
The XRP price made a bearish breakout on Monday as concerns about the health of the industry continued. Ripple slipped to a low of $0.3453, which was the lowest level since November 14. Like Bitcoin and Ethereum, XRP/USD has crashed by more than 30% from the highest level this month.
SEC vs Ripple lawsuit drags
The XRP price has been in a strong bearish trend in the past few months as the SEC vs Ripple lawsuit drags. This sell-off accelerated this month as the FTX crisis continued. Most coins have declined as contagion risks continued.
The fear and greed index has crashed to the lowest level in weeks as investors continue worrying about the sector. At the same time, the volume of Ripple that is traded on a daily basis has declined sharply in the past few days.
According to CoinMarketCap, the volume of XRP traded in the past 24 hours was $2 billion. At its peak, Ripple’s daily volume was worth over $10 billion.
FTX’s bankruptcy will likely have regulatory implications. Most analysts expect that the American government will pass regulations similar to Dodd-Frank ones that it passed during the last Global Financial Crisis (GFC).
Learn more about how to buy Ripple.
Dodd-Frank introduced more strict regulations, such as bank’s stress tests that are carried out on an annual basis. They seek to ensure that American banks can withstand any financial crisis. Such measures will likely be extended to crypto exchanges.
Meanwhile, the SEC vs Ripple case is dragging on in the United States. The SEC accused Ripple Labs and its executives of raising capital without following the law. Ripple has defended itself and argued that it followed the law. It has also sought to provide statements from the SEC itself.
It is not clear when the case will end. Still, like I have written before, I suspect that the outcome of the case will be positive for Ripple. In the worst-case scenario, Ripple will be asked to pay a fine and probably change its business model. The company has also shifted its base from the US to Ireland.
XRP price prediction
The XRP price has been under intense pressure in the past few days. This pressure accelerated when the coin found a strong resistance at $0.3951, where it formed a triple-top pattern. It has also moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved close to the oversold level.
Therefore, Ripple price will likely continue falling as sellers target the key support level at $0.3100. A move above the resistance at $0.3700 will invalidate the bearish view.
