Ripple Coin Ready for a Breakout, as MAs Squeeze it Into a Tight Corner

Ripple coin is one of the oldest cryptos in the market, together with Litecoin, and both are just behind Bitcoin and Ethereum in terms of market cap. These cryptos came out in the early stages of the crypto market, hence their importance, but they haven’t really shown any signs of strength in recent months. They have crashed down during major crypto declines, losing large parts of their value, and the subsequent climb has been an uphill battle every time. But, the situation might change soon for Ripple coin.

Ripple surged higher in April, appreciating nearly 400%, or 4 times in value. But, that’s not much in the crypto market. Compared to other cryptos, that’s merely a small bounce, since some cryptos surged 20 to 30 times during that bullish period. That was the first sign of weakness in Ripple.

The other sign of weakness came when Ripple coin stopped making new highs in April this year. Half of the market continued to make higher highs until May and some of them even made new highs in recent months, but Ripple wasn’t among them. Even now, it hasn’t managed to reach those highs since the reversal in late July.

Ripple Coin Live Chart

We saw a bullish wave in the second week of August, which took the price above $1.40, but it didn’t last long.  Then the second crash in the crypto market for 2021 came, and Ripple hasn’t managed to put up a decent fight since then. The 20 SMA, which acted as support during August, turned into resistance in September, pushing the price of the XRP/USD down. At the bottom, the 100 SMA (green) and the 200 SMA (purple) are acting as support, so XRP/USD is getting squeezed, and a breakout is expected soon. We hope it takes place to the upside, since we are long on this cryptocurrency.

Regarding the legal battle with the US SEC (Securities and Exchange Commission), it is progressing, and the market has gotten used to it. This battle might turn out to be the watermark for the level of intervention/regulation by this agency in the US, and other agencies in the western world. So, it is important, and will be fought tooth and nail until the last blood has been drawn, because the banking establishment doesn’t like cryptocurrencies.