The Ripple price is under intense pressure as the SEC lawsuit drags and as fears of a tighter monetary policy by the Federal Reserve. The XRP is trading at $0.7337, which is close to the lowest level since May 24. The coin’s price is 62% below its highest level this year, bringing its total market capitalization to more than $33.7 billion.
What happened: Ripple and other cryptocurrency prices have been under intense pressure lately. Indeed, after rising to $40,000 last week, Bitcoin has declined substantially to the current level of $34,580. Other coins like Ethereum, Binance and Dogecoin have all declined by more than 10% in the past seven days.
This price action is mostly because investors are afraid of higher interest rates and quantitative easing tapering after last week’s Fed decision. In this decision, the bank left interest rates and QE unchanged and hinted that it will start hiking rates earlier than expected. Still, there could be a silver lining of all this issue. For one, the ten-year yield has dropped to 1.394% while the 30-year has fallen to 1.979%. This is substantially lower than where they were earlier this year.
The Ripple price is also falling as investors watch the ongoing SEC lawsuit. Last week, the judge overseeing the case granted the SEC additional two months to conduct discovery against Ripple Labs. This means that the case could drag on for months unless the two sides decide to settle.
The four-hour chart shows that the XRP price has been in an overall downward trend in the past few weeks. The coin has formed a downward channel that is shown in black. It has also moved slightly below the 25-day and 15-day exponential moving averages.
The price is now between the descending channel while the two lines of the MACD indicator have moved below the neutral level. Therefore, at this point, I cannot see any bullish signal. As such, the price will likely keep falling as bears target the next key support level at $0.6493, which is about 10% below the current level.
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