Ripple price is hovering near its lowest level this year as the cryptocurrency fear and greed index slipped. XRP/USD is trading at 0.3272, which is close to the year-to-date low of 0.2815. Ripple has crashed by about 42% this year and 64% from the YTD high at this price. As a result, the coin’s market cap has crashed to about $15 billion, which is significantly lower than its all-time high of over $60 billion.
The XRP price has been in a strong bearish trend in the past few months as investors continue worrying about the ongoing SEC vs Ripple case. The SEC is accusing Ripple Labs and its two senior executives of raising funds without following due process. On its part, Ripple argues that it followed all laws when it raised over $1 billion in 2013.
It also accuses the SEC of not giving it a warning when raising cash. But, perhaps, the most important evidence is a speech that a former SEC official made a few years ago. Ripple argues that the speech will show that the SEC knew Ripple Labs did nothing wrong. Unfortunately, it is still unclear when the Washington judge will deliver the verdict.
Ripple price also declined as the fear and greed index reversed. CNN Money’s index that follows the S&P 500 index declined close to extreme greed level. At the same time, the closely-watched Bitcoin fear and greed index fell to the extreme fear level. This happened as Bitcoin managed to move below the important support level at $20,000.
The daily chart shows that the XRP/USD pair has been in a strong bearish trend lately. The sell-off gained steam when the coin moved below the support at $0.5140. It then dropped and reached a year-to-date low of $0.2900. Attempts to stage a rebound found a strong resistance at $0.3870. It remains below the 25-day and 50-day moving averages.
Therefore, there is a likelihood that Ripple price will continue falling as bears target the next psychological level at $0.25, which is about 23% below the current level. Conversely, a move above the resistance at $0.35 will invalidate the bearish view.
This post was last modified on Jun 29, 2022, 08:48 BST 08:48