Key Levels to Watch as Ripple’s XRP Crashes amid SEC Lawsuit FUD

Описание: In a reversal of fortunes, Ripple’s XRP crashed drastically as investors reacted to a lawsuit from the Securities and Exchange Commission (SEC) alleging the token is illegal security. The US securities regulator charged San Francisco-based Ripple Labs and its two executives for allegedly selling $1.3 billion worth of XRP in an unregistered public sale. Nevertheless, Ripple CEO Brad Garlinghouse rubbished the SEC lawsuit by calling it “fundamentally wrong as a matter of law and fact.” He vowed to challenge the regulator in court. Unfortunately, his assurance did little in helping XRP out of its running freefall. The cost to purchase one XRP token sunk by as much as 37.94 percent in response to the SEC’s charge. It happened as the total XRP long liquidations in the last 24 hours surpassed the $36.5 million mark. Meanwhile, XRP’s potential to register extended losses increased further after OSL, a Hong Kong-based trading platform, delisted its Ripple-oriented services. Some community members agreed that it could prompt other exchanges to delist XRP as well. That raised the worries of a Long Squeeze — a situation in which investors who hold long positions feel the need to sell into a falling market to cut their losses. XRP completely invalidated the Bull Flag indicator after its strong upside rally last week on a technical front. As shown in the chart below, the token broke below the consolidation pattern to flip crucial support at $0.33 into resistance. Traders now eye an extended correction towards levels with historical value. The first in line is $0.26 that served as resistance during the September-November consolidation period. Breaking below the flipped level would have the XRP price test $0.20 as its downside target.


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