- Ripple price has underperformed most cryptocurrencies like BTC and ETH.
- There are concerns about the ongoing SEC vs Ripple case.
- Also, there are questions about whether XRP is a cryptocurrency.
XRP price held steady as it continued to underperform other crypto majors like Bitcoin and Ethereum. It remained in a consolidation phase at $0.40 where it has been in the past few days even as BTC jumped to the highest point in six months.
US dollar index rebound
It is unclear why Ripple price has continued to underperform the broader market in the past few months. A likely reason is that investors are afraid of the ruling on the long-running SEC vs Ripple case in the United States. With the case now in its third year, there are expectations that the judge will look to conclude it in the coming months.
The two sides have made compelling arguments about why the are right. SEC has argued that Ripple raised cash without following the process. It claims that XRP is a financial security.
On the other hand, Ripple Labs and its execs have argued that SEC was unfair to launch the case. It has pointed to a statement by SEC’s William Hinman, an official who made a speech on the topic a few years ago. Also, with over 20k cryptocurrencies, Ripple has wondered why the SEC singled it out. It is unclear how the judge will rule although I belong to the camp that believes that Ripple will prevail.
Read more: How to buy Ripple.
The main challenge for Ripple and other cryptocurrencies is that the US dollar index (DXY) has made a strong comeback in the past few weeks. It has surged from a low of $101 to over $104 as it pares back some of the losses it made earlier this year.
In most cases, this could be a negative sign for Ripple and other cryptocurrencies since it means that market conditions are changing. Another reason is that some investors question the decentralization of Ripple since Ripple Labs has the sole mandate of releasing tokens.
XRP price prediction
Turning to the daily chart, we see that the XRP price has been in a consolidation phase in the past few days. It has remained around the $0.400 level even as other cryptocurrencies have jumped. As a result, Ripple is hovering at the 25-day and 50-day moving averages. It is also slightly above the ascending trendline shown in blue.
Therefore, there is a likelihood that the coin will remain in this range during the weekend. A complete rebound will only be confirmed if the XRP crypto price manages to move above $0.43.
