The Ripple price has been in a tight range recently. The XRP is trading at $1.6200, which is 17.70% below its all-time high. It has gained by more than 14% in the past 7 days, bringing its total market capitalization to more than $58 billion. It is the second-best performer in the top ten after Cardano in the past week.
Ripple has been in consolidation
For starters, Ripple is a company that developed XRP. The company partners with large money transfer companies like MoneyGram and Santander to help them accelerate their cross-border systems. It uses an ecosystem known as Ripple Net, which helps to facilitate these payments. XRP is the native currency used in this ecosystem.
A big challenge that Ripple faces is that many companies like banks have generally avoided it. Another challenge the firm faces is the ongoing lawsuit filed by the Securities and Exchange Commission (SEC). The regulator alleges that the company raised $1.5 billion without following the law.
Ripple, on the other hand, says that XRP is a decentralized currency like Ether and BTC. However, a closer look at how XRP works raises concerns about it as a decentralized currency. For one, Ripple Labs holds most of the XRPs in existence and it typically releases them every month. In the first quarter of the year, it released 3 billion XRPs.
The outcome of the case will have an impact on Ripple price. If Ripple Labs succeed, there is a possibility that XRP prices will rally as more investors buy in. On the other hand, if the SEC wins, there is a possibility that the XRP will drop. Still, the outcome of this case will likely take some months after it resumes next week. Also, there is a possibility that Ripple Labs will settle with the SEC. So, what next for Ripple prices?
Ripple price forecast
The four-hour chart shows that the XRP price has been in a tight range recently. We also see that the currency has found substantial resistance at $1.6626, which was the highest level on May 2. The currency has moved above the 25-day and 15-day exponential moving averages (EMA). Also, it is being supported by the ascending trendline that is shown in black.
A closer look shows that the XRP has formed a flat-top, which is usually a bullish signal. While it is too early to tell, we can’t rule out a situation where the Ripple price crosses above the resistance as bulls target the all-time high. However, a drop below the resistance level at $1.400 will invalidate this prediction.