The token native to the world’s leading cross-border blockchain network, XRP, experienced a 2.5% decline in value over the past 24 hours, trading at $0.48 on Monday. After a bullish surge last week that propelled XRP price to $0.527, the overall crypto market settled down during the weekend, allowing for price consolidation.
With support at $0.5 lost once again, investors may brace themselves for potential losses extending to $0.465 and $0.45.
John Deaton, an attorney who founded CryptoLaw, has put forward different scenarios where Ripple’s sale of XRP does not necessarily categorize the token as a security. Over the weekend, he argued that many investors bought XRP tokens without prior knowledge of Ripple, the company.
Deaton revealed that a significant 52% of the extensive pool of over 10,000 investors he engaged with confessed to being unaware of Ripple when they initially acquired XRP. This highlights a substantial portion of the investor base discovering and engaging with the cryptocurrency without prior awareness of its association with the Ripple network.
So what about the ones like myself that invested in #XRP AKA Ripples (the ones in it long enough know what i mean) that absolutely knew about @Ripple? One of the main reasons I invested back in 2016 is because of who sat on the Board of Directors and @JoelKatz working for the NSA
— 𒀭Caesar Korvinus𒀭𒂗𒆠 (@CAESARMILLZ) June 23, 2023
The lawyer’s statements sparked a debate among XRP holders and enthusiasts. For example, Caesar Korvinus, a community member, raised questions regarding those who purchased the tokens with knowledge of Ripple, the company.
Deaton responded by suggesting that if Ripple had directly communicated with Korvinus and sold XRP to him, the Securities and Exchange Commission (SEC) could potentially argue that the sale satisfied the Howey test—a legal criterion used to determine if an investment qualifies as a security.
Yes, I said there are people like you out there as well. And, if Ripple had direct contact with you and sold you XRP, there is a valid argument that the Howey test was met because in that scenario 1) you gave💰 to ripple for XRP; 2) you entered into a common enterprise with… https://t.co/Sy9Zr94bOO
— John E Deaton (@JohnEDeaton1) June 24, 2023
XRP price has slipped below $0.50 once again and is testing support at $0.48. The rejection from last week’s high confirmed the formation of a bearish flag pattern. Losing the buyer congestion zone at $0.50 has made the support vulnerable to selling pressure.
Traders typically trigger sell orders slightly below the support of the flag, in this case just below the 200-day Exponential Moving Average (EMA) (in purple). As more sell orders enter the market, volume increases, exerting downward pressure on the price.
That being said, traders will closely monitor a sustained break below the immediate support at $0.48 to confirm the pullback. The technical analysis of the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) suggests that bears have the upper hand, as the MACD’s sell signal reinforces the weakening market structure.
On the other hand, some investors will be on the lookout for a rebound from the $0.48 support level. If sustained, this could enable XRP price to reclaim the $0.50 resistance and pave the way for further gains, targeting $1.
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