XRP has fallen 12% in the last two days and has witnessed selling pressures due to profit booking. However, if it slides below $0.45, its 50-day moving average, it could turn bearish for the short term.'
XRP vs. SEC case, Ripple's CTO, David Schwartz, said in a Tweet that XRP was created to generate revenue for Ripple Labs. This is against the SEC's allegations which accused Ripple of creating an investment contract.
David Schwartz, the Chief Technical Officer of Ripple Labs and one of the chief architects of XRP, ended a long debate on why XRP was created.
The SEC accused Ripple Labs of creating XRP as an investment contract. And using it to secure investments from the public. However, Ripple Labs, the issuer of XRP, denies all such allegations. However, in a congressional committee hearing in the USA, SEC Chief Gary Gensler refused to comment on whether he considers XRP as a security or commodity.
The statement of Ripple CTO Schwartz ends a big debate, at least in public. He had tweeted that Ripple Labs created XRP to fund the operations of Ripple Labs and its blockchain, the Ripple Ledger.
He said this in reply to speculations on Twitter about whether XRP was created as a business plan to sell it to retail buyers or to institutional investors.
XRP is very close to breaking its 50-day moving average of $0.45. At the time of writing, its price is $0.47. If XRP breaks this price, it can go as low as $0.33, breaking its gains over a period of 4 months.
Taking a look at its daily charts, we can see that:
All of these confirm the possibility of a fall in prices.
Short XRP only if it goes below $0.45.
Bearish Targets: $0.36
Stoploss: $0.47
If XRP recovers its price and sustains above $0.5.
Bullish Targets: $0.65
Stoploss: $0.45
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.