- 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.
Also read: Bitcoin price spikes to $42,000 in response to November US CPI data release
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.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Why LIBRA meme coin promoted by Argentina President Milei is crashing?
LIBRA meme coin promoted by Argentina’s President Javier Milei is making headlines again, crashing nearly 15% on the day. A local Argentine media outlet, Perfil, reported that lawyer Gregorio Dalbón had requested Interpol for a red notice to be issued for Hayden Davis.
Metaverse narrative stalls as price action fades, but on-chain data signals continuing accumulation
Metaverse tokens Sandbox, Decentraland and Axie Infinity continue to face correction since they topped in early December. A Glassnode report suggests that despite price pullback, on-chain activity suggests holders accumulation.
DeFi user loses over $700K USDC in a sandwich attack that experts suggest could be money laundering
A DeFi trader became the subject of discussion among crypto community members on Wednesday after losing more than $700K worth of stablecoins to a sandwich attack on the Uniswap v3 protocol.
Tether on-chain activity surges to a six-month high with 143,000 daily transfers
Tether (USDT) stablecoin on-chain activity has rapidly risen, with over 143,000 daily transfers, surging to a 6-month high. Moreover, the USDT Network growth metric increases, indicating greater blockchain usage.
Bitcoin: Will Trump's Strategic Bitcoin Reserve and White House Crypto Summit support BTC recovery?
Bitcoin price extends its decline on Friday, falling over 5% so far this week. BTC uncertainty and volatility spikes liquidated $1.67 billion as the first-ever White House Crypto Summit takes place on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.