- Ripple price has had five bearish sessions out of the last six.
- XRP faces robust resistance barriers upfront.
Ever since encountering resistance at the 20-day SMA, the Ripple price has crashed from $1.05 to $0.72 – losing almost $0.30 in its overall valuation. Having said that, let’s take a closer look with technical analysis.
Ripple Price Finds Support At 200-day SMA
Over the last six days, the Ripple price has had five bearish sessions, as the sellers have taken complete control of the market. The Bollinger band has started expanding to show increasing price volatility. The relative strength index (RSI) shows that the Ripple is going to drop more.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple price shows increasing bearish market momentum so XRP is bound to drop even more, As per the TD sequential detector, XRP will chart two more red candlesticks before flashing the buy signal with the red-nine candlestick.
Image: XRP/USD 4-hour
Here’s what the SEC has that Ripple doesn’t
In the ongoing Ripple-SEC lawsuit, the Court had a host of motions pending on its table. However, Judge Sarah Netburn recently decided to grant the regulatory agency additional time for discovery, despite Ripple’s opposition. With this ruling, the case will be prolonged further, and now, the discovery phase will conclude itself by 16 October.
The ruling has undoubtedly hindered the momentum that the defendants had until a few weeks ago. Commenting on the news, attorney Jeremy Hogan said:
Time is NOT on Ripple’s side and every time the SEC says they want this over quickly, it is lying. It [the SEC] wants to WIN and every week that goes by helps it.
The SEC now has the permission to make additional deponents testify. The regulatory agency is seemingly not in any rush to finish this case. After all, the outcome of this case would serve as a precedent for future lawsuits. Notably, contrary to popular belief, Hogan believes that the pace of the case has been pretty impressive.
The chances of a settlement at this stage cannot be eliminated. However, a settlement would only happen after the close of the fact discovery. The deadline for this has already been extended. According to some experts like Stefan W. Huber, a settlement might not be a bad offer after all. He tweeted:
The SEC gains nothing from the additional time, but Ripple does. On the other hand: Ripple, gains additional information but loses a time and money due to the delays. To me personally: This looks like a pretty darn good basis for a settlement.
Additionally, with the change of administration in the US, people from the XRP community hope that the new Chairman of the SEC, Gary Gensler, would personally get involved in the case. According to Hogan, that is not going to happen.
Obviously, no settlement happened in May and I truly believe that new Chairman Gensler is not going to get involved.
Ripple Price Is Expected To Reach These Levels
As things stand, the Ripple price is crashing towards the $0.70 psychological level. In the process, XRP will flip the 200-day SMA from support to resistance.