Last week, a US federal judge ruled that Ripple is a security when sold to institutional investors. This was a major victory for Ripple, but the judge ruled that it is not a security when sold to retail investors. As a result, the price of Ripple jumped by more than 30%.
For technical traders, it is important to know whether the higher spike is enough to break the bearish trend. It appears that bulls will need to put in more effort for the bearish trend to end. Ripple must trade above parity with the US dollar for the bearish bias to end.
At the moment, Ripple’s price remains under pressure unless it is able to climb above parity with the US dollar. Any strength of the US dollar should lead to Ripple giving up more of its recent gains. However, if the market is able to break out above parity, this could act as a reversal pattern, and may signal the end of the bearish trend.
In conclusion, the bias remains bearish unless Ripple is able to trade above parity with the US dollar. Until then, US dollar news is likely to influence Ripple’s price action.
