XRP Value Dips Amid Potential U.S. Regulatory Scrutiny

XRP, the digital asset associated with a blockchain payment protocol, experienced a 0.65% decline, bringing its value to $0.4881 on Tuesday, October 18, 2023. This decrease follows a 1.38% drop the day before, fueled by growing concerns regarding increased scrutiny of digital assets in the United States. Over 100 lawmakers, including Senator Elizabeth Warren, are calling on the White House to take action against the illicit use of cryptocurrency in financing terrorism.

Reports indicate that Israeli authorities compelled Binance to shut down accounts linked to Hamas, resulting in the seizure of millions in cryptocurrency assets. Between 2021 and June 2023, Hamas and the Palestinian Islamic Jihad (PIJ) reportedly raised over $130 million in cryptocurrencies and transferred substantial amounts among themselves.

These events prompted lawmakers to craft a bipartisan letter to the White House, which could significantly influence the cryptocurrency market if it leads to stricter regulations on US crypto exchanges, as well as enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) measures.

Historically, increased scrutiny from the White House has had a negative impact on investor sentiment within the digital asset sector. The ongoing case involving the SEC and Ripple, along with regulatory uncertainties, has caused XRP to retreat from its post-ruling peak of $0.9327, despite a rise in adoption following a favorable court ruling concerning XRP and Programmatic Sales.

At present, XRP is trading below both the 50-day and 200-day Exponential Moving Averages (EMAs), which signals bearish trends. A further decline below $0.4850 could lead to a drop to the $0.4700 support level. Conversely, a breakout above the $0.5042 resistance level could trigger a bullish run. The Relative Strength Index (RSI) indicates a possibility of a decline below the $0.48 mark before entering the oversold range.