The crypto analyst Michaël van de Poppe evaluates the price development of XRP after the measures taken by the US stock exchange regulator against the payment company Ripple.
Since the SEC filed its lawsuit alleging Ripple sold unregistered securities, XRP has plummeted. With the entire crypto market seeing a 6% correction in the past 24 hours, XRP has crashed much more severely, falling more than 30%.
In a new video, van de Poppe draws potential lines of support as the asset continues to seek a bottom. With an XRP of $ 0.27 at the time of publication, Van de Poppe says there aren’t many points of resistance on the way down when XRP falls.
“Since I found these blocks here at $ 0.45 was an entry zone, the next loss is around $ 0.30. So after such a drop, we get there. There are no real levels in between. ”
The moment [XRP] If you lose $ 0.45, your first level will be $ 0.30 regardless of whether or not you get a lawsuit from the SEC. “
Van de Poppe is cautious about jumping into XRP, suggesting that with the general altcoin surrender, there could be some much safer and more beneficial games for traders.
“Given that we’ve got so low on a daily candle and that there’s a lawsuit from the SEC… I definitely wouldn’t take such a risky approach at this point, especially given that there are so many altcoins out there right now – a very interesting level that offers more potential than XRP. “
For those thinking about the asset, van de Poppe outlines what these traders should look out for and what he thinks are the best and worst scenarios for XRP. However, the analyst warns viewers that XRP will likely remain in a limbo until the SEC decides on Ripple’s fate.
“In the best case scenario, we will get a relief rally [$0.40 range] and go sideways again … however, if this does happen, it will be a considerable time before it bottomed out …
There are two results. For one, the SEC is not going to bring charges and [Ripple is] Just a fine which would be a very bullish result for crypto in general and security tokens in general for the US. In this case, we likely have a very bullish market for XRP that would be bullish for the overall markets per se, but that will take a long time.
In the worst case scenario, the SEC won’t do well and the price will drop even further and most likely there will be D listings, which means you have a token that you can’t sell anywhere. “
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Selected image: Shutterstock / Kunstofen