Ripple Price Analysis: XRP Flips Parabolic SAR From Negative To Positive

Daily Ripple XRP Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • Ripple price retreats after dropping off from $1.67 resistance.
  • MACD shows increasing bearish market momentum.
  • Since May 13, the Ripple price jumped from $1.26 to $1.60 - gaining more than $0.30 in its overall valuation. Before this jump, XRP had crashed from $1.62 to $1.35 between May 6 and May 13, flipping the 20-day SMA from support to resistance.

    Ripple Price Flips Parabolic SAR

    Looking at the daily Ripple price chart, we can see that XRP has flashed three major buy signals:

    • The 20-day SMA has flipped from resistance to support.
    • The parabolic SAR has reversed from negative to positive.
    • The relative strength index (RSI) shows that XRP still has room to grow before it gets overpriced.

    Image: XRP/USD daily

    Ripple XRP Daily Chart

    In the 4-hour Ripple price chart, XRP has surged from $1.34 to $1.67, flipping the 20-bar, 50-bar, and 200-bar SMAs from support to resistance. The MACD shows sustained bullish momentum so the sentiment is definitely positive. The TD sequential detector shows that XRP could chart at least 4 more green candlesticks before it flashes a sell signal.

    Image: XRP/USD 4-hour

    Ripple XRP 4-Hour Chart

    Ripple seeks legal protection from disclosure to SEC

    According to a new filing by Ripple, the US Securities and Exchange Commission’s (SEC) motion to strike Ripple’s “lack of due process and fair notice” defense should be denied. Ripple's lawyers argued that the SEC’s motion to strike Ripple’s affirmative defense fails to meet the “demanding” legal standard required. An affirmative defense is where the defendant introduces evidence that if proven, mitigates the defendant’s legal liability. 

    The lawsuit relies on the legal status of XRP and whether transactions involving XRP constitute “investment contracts." The SEC had sought to dismiss one of Ripple’s main arguments that the SEC failed to provide “fair notice” that XRP transactions violated the law or that the SEC would later claim XRP itself to be an investment contract. 

    In a 34-page memorandum of law filed on May 13, Ripple's attorneys said:

    Instead of challenging Ripple’s defense as a matter of pleading, the SEC instead seeks a premature judicial determination of the ultimate merits of Ripple’s defense, asking the Court to credit disputed facts set forth in the supplemental declaration of the SEC’s trial attorney.This is improper — the Court cannot, as a matter of law, rely on disputed facts proffered by a plaintiff to foreclose a legally cognizable defense.

    Ripple’s attorneys are also seeking to bolster their fair notice defense. The payments firm contended that XRP is a virtual currency and not a security. 

    Transactions in XRP are recorded on the XRP Ledger, which is decentralized ‘software code’ that originated in 2011-2012, before Ripple was founded.

    Ripple attorneys further explained that the firm has never explicitly or implicitly promised profits to any XRP holder and has no relationship with the vast majority of XRP holders today, nearly all of whom purchased XRP from third parties on the open market. It added that the limited contracts that Ripple did enter into with sophisticated institutional counterparties were not investment contracts, but standard purchase and sale agreements with no promise of efforts by Ripple or future profits.

    Ripple further asserted that its settlement with the US Treasury’s Financial Crimes Enforcement Network (FinCEN), the Department of Justice in 2015, and the SEC’s “Guidance” did not provide fair notice. SEC-issued reports, such as the report on The DAO and enforcement actions from 2017 onward concerned initial coin offerings (ICOs), which Ripple did not hold, the defense attorneys argued. 

    There is a genuine dispute as to whether a person of ordinary intelligence would have concluded that the SEC’s actions suggested that XRP was — or was not — a security, given the SEC’s focus on ICOs.

    Ripple Price Is Expected To Reach These Levels

    The buyers will need to ride the bullish momentum and break past the $1.67 resistance barrier to reach the $1.85 level.