- Ripple price stays under bearish control for five straight days.
- 20-bar SMA provides strong resistance in the 4-hour chart.
Over the last five days, the Ripple price faced rejection at the $1.83 resistance barrier and dropped to $1.35. During this time period, the sellers retained continuous control over the market.
Ripple Price Drops From $1.83 to $1.35
The Ripple dropped below the $0.14 psychological level today and managed to flip the parabolic SAR from positive to negative. The MAD shows that the market momentum is on the verge of reversing from bullish to bearish, so a further drop in XRP is expected.
Image: XRP/USD daily
Looking at the 4-hour Ripple price chart, we can see that the 50-bar SMA has already crossed over the 20-bar SMA to form a bearish cross. The latter has acted as a strong resistance and pushed the price down.
Image: XRP/USD 4-hour
Ripple Accuses SEC of “Intimidation”
Ripple Labs has recently asked the US Securities and Exchange Commission (SEC) to stop asking foreign regulators to obtain information on Ripple and XRP on its behalf. In a joint letter to Magistrate Judge Sarah Netburn Ripple’s legal representation said, the SEC was pursuing discovery “outside the scope of the Federal Rules and the Hague Convention by improperly leveraging Memoranda of Understanding (“MOU”) with foreign regulators, who then, at the SEC’s request, serve burdensome document requests on entities under the foreign regulator’s jurisdiction.”
MOUs are formal agreements between two or more parties. In this case, the SEC and foreign regulators have MOUs to enable the sharing of information. Such MOUs generally allow the regulator in one nation to make a request to another agency in a different country to obtain and share information on its behalf.
Ripple found out that the SEC was seeking information on Ripple from at least 67 global third parties. This included MOU requests to regulators in Japan, the UK, and Singapore. Lawyers representing Ripple said:
This has had a significant chilling effect on Ripple’s commercial and business operations with partners in those jurisdictions who have received requests from foreign regulators relating to this action.
The lawyers went on to add that allowing the regulator to use MOUs to collect information on Ripple is unfair as it is a process only available to the SEC. They noted that the process “represents an end-run around the Court’s authority to oversee the extent of foreign discovery necessary in the litigation.”
The SEC has agreed to provide Ripple with the “substance” of the requests, but not the correspondence with foreign regulators related to the requests. Ripple’s lawyers said that the SEC has refused to stop using the MOU requests and has not provided them with a list of the overseas parties from whom it has sought discovery, despite promising to do so.
Jeremy Hogan, a partner at law firm Hogan & Hogan, said:
The SEC is going to foreign regulators and requesting documents re Ripple’s business partners. The foreign governments then request documents from those partners. This places regulatory pressure and a burden on Ripple’s foreign business partners. This is NOT something a ‘typical’ Plaintiff could do and it’s not fair, so Ripple is calling dirty-poker.
Ripple Price Is Expected To Reach These Levels
The Ripple price may be pushed down to the 20-day SMA ($1.17). Following that XRP, will bounce back up and reach $1.55.