Ripple price (XRP) is under pressure today as traders remain focused on the US election and the relatively stronger dollar. The digital currency is trading at $0.2163, which is lower than October high of $0.2646.
Ripple has been under intense pressure recently, a fact that has seen it overtaken by Tether in terms of market cap. In total, Ripple has a market value of $10 billion, which is significantly lower than Tether’s $16 billion.
The biggest challenge for XRP has been weak adoption by banks because of the regulatory environment. Indeed, in a recent Twitter interaction, Ripple’s CTO said that banks were reluctant to use the network was because of, “Regulatory uncertainty, last mile problems, fear of reprisals from existing partners.” Also, many banks have avoided the network because of how new it is and the sensitivity of financial transactions.
Indeed, Ripple has pledged to move its headquarters from the United States to London if the current regulatory standoff remains.
Ripple price is also probably falling because of the relatively stronger dollar. The dollar index is up by more than 0.50% as traders wait for the official results of the election. These results could take more time to come out as states continue counting mail-in ballots.
The daily chart shows that Ripple price has been on a slow downward trend since October 21st, when it reached a high of $0.2646. Today, the price is a few points above the lowest level since September 23rd. It is also slightly above the 50% Fibonacci retracement level. Therefore, at this point, I believe that the path of least resistance is lower, with the next target being at $0.2213, the lowest level on September 24. On the other hand, a move above 0.2646 will invalidate the downward thesis.
