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Simon Chandler
Author
Simon Chandler
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The XRP price has plummeted by 11% in 24 hours, with its drop to $0.5219 coming after the SEC filed a notice of appeal in its long-running legal battle with Ripple.
XRP is now down by 11% in a week and by 8% in a month, with the SEC’s move yesterday coinciding with a negative market reaction to escalation in the Middle East.
However, it also coincided with Bitwise filing to register an XRP ETF trust in Delaware, something which raises hopes that the XRP price could surge once its ongoing legal issues end.
XRP Price Forecast: $4.5 Billion Fund Manager Bitwise Files for XRP ETF – Can XRP Reach $100?
The fall today means that the XRP price has entered oversold territory, which under normal circumstances would indicate an incoming rebound.
Its indicators have certainly neared a bottom, with its relative strength index (purple) falling below 30 earlier this morning.
Likewise, XRP’s 30-period moving average (orange) has dropped well below the 200-period (blue), again highlighting how the coin is firmly in oversold territory.
This means that XRP is trading at a steep discount and should recover soon, although traders may need to wait for the dust to settle on the SEC’s appeal notice before things improve.
Some legal experts, including longtime XRP fan Jeremy Hogan, have already argued that the SEC has made a mistake, and is unlikely to succeed.
Hogan even suggested that, even if the SEC is successful with an appeal, it won’t change XRP’s legal status, meaning that exchanges will continue to list it.
Such commentary puts the news of Bitwise’s ETF filing in a more positive context, suggesting that it may be only a matter of time before Bitwise wins approval.
Bitwise is one of the eleven firms that gained approval for a Bitcoin ETF in January, so it has form and experience when it comes to filing ETFs.
Of course, the SEC’s actions yesterday could mean that we may have to wait a while for an XRP ETF to eventually see the light of day.
But as with this year’s Bitcoin ETFs, their emergence could substantially boost the XRP price.
Once the market stabilizes after this week’s declines, XRP should return to $0.60 by November.
New Presale Tokens Show More Potential
Given XRP’s uncertain legal status, many traders may find themselves tempted to look to alternatives, with presale coins being one promising source of gains.
While the market is awash with new sales, one way of picking out potential winners is to look for offerings that have gained more momentum and managed to raise higher sums.
One coin doing this is Flockerz (FLOCK), a new ERC-20 token that has already raised over $350,000 in its recently launched sale.
Billing itself as a vote-to-earn token, Flockerz will reward holders for participating in governance votes.
This could make Flockerz very lucrative for participants, given that every decision concerning the coin’s development will go to a community vote.
Holders of FLOCK will also be able to stake the token, earning themselves a regular income on top of rewards for voting.
This could provide a big incentive to hold FLOCK, with the coin having a max supply of 12 billion.
It will be highly decentralized for a new meme token, with 25% of its supply going to staking, 25% to governance rewards, and also 20% for its sale.
The coin’s sale will have 50 stages in all, with investors able to join now by going to its official website and connecting their crypto wallets.
They can currently buy FLOCK at a price of $0.0056785, although this will rise which each new stage.
Based on the early signs, it seems that Flockerz is already gaining plenty of momentum, and could end up being one of the biggest presale coins of the year.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
