The Ripple price is under pressure as the sell-off in digital assets accelerates. The XRP is trading at $1.4178, which is 12% below its weekend high of $1.688. The currency has a market capitalization of more than $48 billion, making it the 7th-biggest cryptocurrency in the world.
What happened: The XRP price is struggling as investors worry about the monetary situation in the United States, where investors have started moving their funds from assets at risk of high inflation like growth stocks and cryptocurrencies. The currency is also falling after Elon Musk hinted that Tesla was considering selling off its BTC holdings because of the use of fossil fuels in its mining.
Meanwhile, Ripple is also falling as investors continue follow the ongoing SEC vs Ripple Labs case. The SEC alleges that Ripple misled investors when it raised $1.5 billion a few years ago. As such, the SEC argues that, based on the SEC vs Howey precedent, the company needed to have filed papers since XRP was a security. Ripple Labs argues that XRP is simply a cryptocurrency like Bitcoin and Ether. The outcome of the case could have important ramifications for XRP and other tokens.
The four-hour chart shows that the XRP is down by more than 27% from its all-time high. The currency is also forming a symmetrical triangle pattern that is shown in black. It is also consolidating at the 50-day and 100-day exponential moving averages (EMA) and slightly above the 38.2% Fibonacci retracement level.
Therefore, the chart arrangement shows that the XRP/USD may be about to break out. Since this is a symmetrical triangle, it is unclear the direction of the breakout but we can’t rule out a bullish breakout since the price was rising before this. This action will be invalidated if the price moves below $1.1687.
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