Ripple Price Analysis — May 12

Ripple Price Analysis — May 12

The United States Securities and Exchange Commission’s decision to initiate a lawsuit against Ripple (XRP) has taken a toll on the broader cryptocurrency market. Whether Ripple is a security or not has gotten debated extensively and is the primary focus of the suit. That said, the final judgment of this case will test the effectiveness of the ‘Howey Test’ in today’s time.

SEC Commissioner Hester Pierce recently criticized the use of the Howey Test by the Supreme Court in distinguishing between assets and securities. She argued that the Howey Test suffered some challenges over the years in its application to the cryptocurrency industry.

Nonetheless, the need for a clear-cut regulatory framework for cryptocurrency remains unabated. The need for regulations in the crypto industry got highlighted by Stuart Alderoty, Ripple’s General Counsel. He noted that the air of regulatory uncertainty in the United States was a significant concern. The General Counsel argued that:

“The SEC continues to regulate the space through enforcement rather than adopting laws, rules or regulations.”

He added that:

“America’s regulation by enforcement strategy is already driving innovators away to countries like Japan, Singapore, the U.K., and Switzerland that has established a clear regulatory framework for crypto. The U.S. is creating uncertainty that hurts markets and consumers while hampering the drive for innovative new approaches to cross border payments, financial inclusion, and more.”

Key Ripple Levels to Watch — May 12

Ripple continues to face the difficulty of regaining a bullish momentum since its rejection from the $1.7500 resistance. Based on the hourly chart presented below, the seventh-largest cryptocurrency is trading along a descending channel, further reinforcing its bearish bias.

XRPUSD – Hourly Chart

That said, XRP needs a break above the $1.5500 resistance to negate the current channel. However, with the level of trading volume seen in the market, a bullish surge seems unlikely in the near term.

Meanwhile, our resistance levels are $1.5000, $1.5500, and $1.6000, and our support levels are $1.4000, $1.3500, and $1.3000.

Total Market Capitalization: $2.5 trillion

Ripple Market Capitalization: $51 billion

Ripple Dominance: 2%

Market Rank: #7

 

You can purchase crypto coins here: Buy Coins

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.