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Michael97
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Hi Michael and thanks for the question. 

Looking at today’s price action, Ripple is struggling to keep its head above $0.20 after it was dragged below $0.2150. This is a very important level for Ripple technically, which can determine the price action direction in the short-term. 

The break also meant that Ripple broke below the ascending wedge to print the new 1-month low around the $0.1750 handle. This zone is likely to play an important role again given that it capped a previous attempt to break lower. 

Separately, Ripple company confirmed that it is working on a new lending solution that will be based on XRP tokens. 



 


 

Edited by Elise Cubb
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Hi Michael, 

Thank you for your question. 

Ripple has continued to trade sideways in the past few days. Honestly, the stock price looks a bit depressed to me. The volume isn't high and XRP/USD continues to record small candles trading sideways.

Interestingly, Christopher Giancarlo, the former president of the U.S. Commodity Futures Trading Commission (CFTC) claimed that Ripple’s XRP should be regarded as a currency, not a security.

“The increased adoption of XRP as a medium of exchange and a form of payment in recent years, both by consumers and in the business-to-business setting, further underscores the utility of XRP as a bona fide fiat substitute,” Giancarlo and his colleague Conrad Bahlke, said recently. 

According to these two, the XRP isn’t an investment contract and would fail to pass Securities and Exchange Commission’s (SEC) Howey Test.

They believe that XRP “cannot be an investment contract as there is no contract or arrangement to speak of between Ripple and the overwhelming majority of XRP holders. On the contrary, the contracts that Ripple has entered into explicitly exclude general XRP holders as third-party beneficiaries”. 

Therefore, Ripple's XRP isn't a security in the same way as Bitcoin and Ethereum are not. 

“[G]iven the juxtaposition between XRP’s intended use as a liquidity tool, its more general use to transfer value and its potential as a speculative asset, XRP holders who utilize the coins for different purposes have divergent interests with respect to XRP,” said Giancarlo and Bahlke.

Recently, Kevin Rose said, an early investor in Ripple, said that he still doesn’t see XRP as a currency, a view that is on a completely different side than the one of Giancarlo and Bahlke. 

Going back to the technical aspect of the picture, the bears seem a bit more confident that they can win the short-term game. If that's the case then we can expect a trip towards $0.1750, where the horizontal support is located. This step would mark the lowest levels in XRP/USD seen since April. 

I hope this answer was helpful. 

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Hello Michael,

Price of Ripple (XRP) has corrected roughly 5% after reaching a 1-month high just above the $0.21 mark. The bears took advantage of bulls’ failure to clear the resistance line and forced a price correction, but bulls remain in control.

According to the recent price action data, a short-term bullish move is likely. If XRP manages to move to the $0.1957, it could easily attract new Ripple buyers.

David Schwartz, Chief Technology Officer of Ripple, expressed a rather controversial opinion on crypto prices, saying that they’re controlled by the public’s confidence and not market whales.

Schwartz said this in a post on Twitter, adding that the current value of XRP ($0.20) can’t be correct. 

“My logic is simply that if the price really were ‘obviously too low’ or ‘obviously too high,’ enough wealthy people would buy or sell to push the price into a reasonable assessment of value,” he said.
 

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