XRP Price Shows Weakness! Here’s What Traders Can Expect
As Ripple Labs is not slowing down in bringing new announcements to the network, including XRP Ledger and confidence of a victory against the SEC in the final judgment, it creates hope of a new era for the XRP token ahead. However, the XRP price is not giving any results as it focuses on extending its bearish rally for another couple of days.
XRP Reflects Strong Community Support
The debate over whether XRP is security has come a long way, and now it is heading toward its finishing line. John E. Deaton, the founder of CryptoLaw, is presenting a more compelling argument for why crypto tokens should not be classified as securities.
In response to a Twitter user’s assertion that nearly all coins or tokens are securities, the lawyer representing XRP holders rebutted by stating that this claim is false. Deaton argued that the SEC’s viewpoint, which regards the token as a security, should not persist in the cryptocurrency sector.
Deaton clarifies that the fact that a token can be presented, promoted, and traded as a security does not automatically mean that the underlying token or asset is a security. Instead, he asserts that the token is merely a software code at its core.
Furthermore, Deaton argued that the term “security” or “investment contract” was never intended to describe the underlying asset itself but rather the specific circumstances surrounding its sale and offers.
These statements from Deaton are strengthening the XRP community and filling them with the confidence of a one-sided win against the US regulator.
XRP Price May Witness A Steep Fall Below This Level
The release of Personal Consumption Expenditures (PCE) data on Friday made a bearish impact on the crypto market, plunging several altcoins to their weekly bottom levels, and XRP is no exception.
For the past few days, the XRP price has been hovering close to the support line of the descending channel pattern. However, despite the bulls’ efforts, XRP made a downward breakout and is continuing to drop further.
As of writing, XRP price trades at $0.378 with a decline of 2%. Analyzing the daily price chart, the XRP token is preparing for a breakout below its 23.6% Fib level at $0.365. If XRP trades below $0.36, it may head toward a support region of $0.31 before validating any further movement. Moreover, the RSI-14 trend line hovers near the boundary of a selling region at 44, and a drop to 35 will trigger a more bearish bloodbath ahead.