It’s been a bearish week so far in the crypto market, and Ripple’s XRP seems to be getting close to test the key $1 level ever since Bitcoin crashed under the $60,000 level and appears to be heading for more laws. At the time of writing, XRP/USD is trading at around $1.06.
On a positive note though, taking a look at the extent of daily losses amid the leading cryptocurrencies, we see a far lower percentage of loss in the world’s seventh largest cryptocurrency. The bullish sentiment of the crypto market over the recent weeks was overturned suddenly earlier this week on news of signing of the Infrastructure Bill in the US which would bring with it crypto tax regulations. Markets see this as a sign which would scare serious investors away from investing in digital assets, supporting a panic selling across the board.
Ripple Proposes Crypto Regulation With Reduced Role For SEC
Speaking of regulations, even as the lawsuit between the SEC and Ripple drags on, the company has proposed a possible regulation for cryptocurrencies and other digital assets, insisting that forming such a framework should take into account inputs from the private sector in a collaborative manner to drive more innovation in the sector. What is interesting about the proposed framework is that it suggests reducing the SEC‘s role as a regulator for this asset class in favor of the CFTC instead. We not sure if this was a subconscious decision especially as the SEC trains its guns on the company alleging that it sold its XRP cryptocurrency as unregistered securities.
The proposal speaks out against the SEC which seems to be on somewhat of a witch-hunt against crypto and DeFi firms based in the US, a move that Ripple has warned could stifle innovation in the space and drive businesses to set up in other markets instead. The paper also expressed support for a proposal from SEC Republican Commissioner Hester Pierce to offer a temporary exemption to cryptocurrency-based businesses from securities rules to foster development.
The XRP community has been rallying hard on social media to engage support for the cryptocurrency among the public, they note that the lawsuit will have far reaching consequences not only on the future of XRP but also on other leading cryptocurrencies as well. A win for Ripple on its fair notice defence could also offer support to the world’s second largest cryptocurrency Ethereum, which got dragged into the legal tussle on the same issue. In addition, analysts believe that the lawsuit can pave the way for more effective regulation of the overall cryptocurrency sector.
XRP/USD Technical Analysis
On the 4-hour chart of XRP/USD, moving averages and the MACD are exhibiting a strong bearish bias. Although, the momentum indicator points to some buying interest in the market as well.
Ripple’s XRP price sits well under the pivot point at $1.21 and is also holding under the first support at $1.08 for now. Keep an eye on the second support level at $0.98 which could be tested if XRP breaks down under the $1 level amid further selling by investors.