- XRP price is likely to decline to the imbalance zone at $0.55, before a rebound in the altcoin.
- Pro-XRP attorney John Deaton slammed US Senator Elizabeth Warren’s crypto bill.
- Ripple is battling selling pressure amidst regulatory headwinds, lawsuit settlement with the SEC remains elusive.
US Consumer Price Index (CPI) data release for November has revealed an increase of 0.3% in inflation, month-on-month and the annual inflation rate is 3.1%. The CPI report and the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday make for volatile Bitcoin and altcoin prices.
XRP price sustained above $0.60, the altcoin is resisting a drop to the imbalance zone at $0.55. A decline to the imbalance zone would mark a 7% drop in XRP price. As crypto legislation in the US enters final stages, XRP price resists further drop.
Daily Digest Market Movers: US gears up for crypto legislation, Crypto bill causes a stir
- US Senator Elizabeth Warren has proposed a bill that requires crypto investors to disclose where their crypto assets are located and the maximum value of assets held.
- Sen Warren’s bill has caused a stir among market participants, and pro-XRP attorney John Deaton slammed the legislator for her stance on crypto.
- The crypto bill is supported by a coalition within the Banking Committee. Sen Warren’s bill calls for an increase in oversight and crypto regulation, while citing associated risks like terror financing.
- Sen Warren is of the opinion that cryptocurrencies are an avenue for criminal activities and need to be regulated within a framework to mitigate associated risks.
- Attorney Deaton argues that the bill is a significant one as nine US senators have joined Sen Warren and considers the legislator, “the single biggest threat to crypto in the US.”
- Ripple supporters and XRP holders are awaiting the next steps in the SEC v. Ripple lawsuit. A settlement is likely elusive, the remedies related discovery phase of the lawsuit ends in February 2024.
Technical Analysis: XRP price resists decline to $0.55
XRP price suffered a decline from its November 14 top of $0.7495 to $0.6072, at the time of writing. The altcoin is currently above its 200-day Exponential Moving Average (EMA) of $0.5593. XRP price dropped below its 10- and 50-day EMAs.
In the event of a continued decline in XRP price, the altcoin could post a recovery from the $0.55 level, close to the imbalance zone between $0.5615 and $0.5631. Once the gap is filled, XRP price is likely to resume its upward trend.
XRP/USDT 1-day chart
A daily candlestick close below $0.55 could invalidate the thesis of recovery in XRP price.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.