Ripple Price Prediction: Buyers Attempt Comeback As SEC Drama Continues On
Daily Ripple XRP Technical Analysis
- Ripple price has flashed the bearish cross in the daily chart.
- XRP in the 4-hour chart bounces up after charting the morning star.
The bears have been in complete control of the Ripple price between May 19 and May 23, as it chased from $1.58 to $0.785 – losing 50% of its overall valuation. During this crash, XRP managed to flip the 20-day and 50-day SMAs from support to resistance. Let’s take a closer look with technical analysis.
Ripple Price Charts Bearish Cross As Buyers Attempt Comeback
Looking at the daily Ripple price chart, we can see that XRP has flashed a major sell signal, as the 50-day SMA has crossed over the 20-day SMA. For the buyers to take back control, they will need to push XRP to $1.35 and cross over both the 20-day and 50-day SMAs. The expanding Bollinger Band indicates that price volatility is on the rise, so such a sharp movement is not outside the realms of possibility.
Image: XRP/USD daily
In the 4-hour Ripple price chart, XRP has bounced up from the $0.70 support wall by charting the morning star pattern. After five straight bullish candles, XRP has encountered resistance at the 20-bar SMA. The buyers will need to overcome this resistance to reach the $1 psychological level. The MACD shows increasing bullish market momentum, so such move could definitely be possible.
Image: XRP/USD 4-hour
SEC-XRP Lawsuit: The Latest Chapter
Judge Sarah Netburn of the SEC-Ripple lawsuit recently ruled that the SEC could continue sending out requests to foreign governments seeking Ripple’s documents from business partners.
One of the issues presented in the recent hearing was whether or not the SEC could access the opinion letters from Ripple’s lawyers to Ripple that would help them decide if XRP was a security or not. From SEC’s oral argument during the hearing, it is clear that Ripple has already given the SEC two lawyer letters from 2012 and 2015. The former letter cautioned the execs that “XRP could be a security.”
The SEC’s attorney further contended that Ripple was conversing with exchanges in a “biased” way by stating that XRP was not a security. However, the SEC pointed out that Ripple’s legal counsel at the time might have stated otherwise. Thus the SEC wanted to see the communications to get a clear understanding.
Putting forth his opinion in a video, crypto attorney Jermey Hogan said:
The SEC wants to get other lawyer opinion letters because it wants to be able to say Ripple had fair notice from its own lawyers… But more this litigation goes on, the more important, I think, the fair notice defense is.
As asserted in their response letter to Ripple, SEC’s attorney went on to argue that Ripple was attempting to plead a good-faith defense and call it a fair notice.
Another listener who attended the hearing said,
I think the communications will be protected under attorney-client privilege. The judge in my opinion is requesting time to come to a decision to relive into the several cases used as evidence on both sides.
Hogan concluded by saying:
I don’t think she [Judge Netburn] will follow the SEC down this road. My opinion – Motion denied.
Ripple Price Is Expected To Reach These Levels
If our bullish hypothesis is correct, then the buyers will likely push the Ripple price up to $1 psychological level. However, to truly turn the tides of the market, XRP will need to jump to $1.35 and flip the 20-day and 50-day SMAs from resistance to support.