XRP Succumbs to Selling Pressure but Technical Signals Show Promise

Highlights

• The XRP price is down 8% in the past week to hover in the $0.42 area
• Ripple is planning an expansion in Dubai
• The bitcoin price has been in the spotlight amid confusion about U.S. government holdings.

The XRP price has been taking it on the chin lately and is down 8% in the past seven days to $0.42. Trading volume is under $1 billion, which is light compared with bullish cycles.

With a market cap of $21.7 billion, the Ripple-issued currency is holding tight to the No. 6 spot in the rankings but needs momentum to reclaim its recent highs in the $0.50 area.

Popular crypto analyst Ali_Charts on Twitter has given a scenario that could propel the XRP price higher. He pointed out a technical setup in which the “TD sequential” indicator, which shows when a trend is losing steam, is presenting a buy signal on the short-term XRP chart. Any validation of that scenario could catapult the XRP price back up to $0.45.

Ripple vs. the SEC

Ripple CEO Brad Garlinghouse has revealed the price tag on the blockchain startup for defending itself against the U.S. SEC in court. The case, which takes aim at the company allegedly selling XRP as an unregistered security, is costing Ripple $200 million, according to Garlinghouse speaking at a recent conference in Dubai.

 Ripple’s Dubai Expansion 

The Ripple boss went on to share that his company has set its sights on a Dubai expansion. Garlinghouse explained that one-fifth of the company’s customers are domiciled in the MENA region anyway where a clear regulatory framework is being crafted and making it easier for blockchain companies to operate.  

Crypto Market Confusion

XRP had managed to trade independently of bitcoin in recent months but lately there appears to be too much uncertainty spreading. 

In recent days, confusion swirled around whether the U.S. government was preparing to sell its Silk Road-related BTC holdings, spooking investors and triggering a 5% drop in the bitcoin price. However, there is no evidence of the U.S. government’s bitcoin balance declining.  

Meanwhile, the bitcoin price is weighing on the broader crypto market as it continues to distance itself from the $30,000 level. 

Nevertheless, inflation remains high despite cooling somewhat in April. And in the U.K., inflation continues to hover in the double digits, which bodes well for a store-of-value asset like bitcoin in the long term.