- Ripple price volatility is on the rise in the 4-hour timeframe.
- The buyers aim to cross the 20-day SMA.
On May 31 and June 1, the Ripple price jumped up from $0.827 to $1.03, crossing the $1 psychological level in the process. Since May 22, the Ripple price has been trending in a narrow $0.27 channel between $1.05 and $0.78.
Bears Snatch Back Control From The Bulls
This Tuesday, the sellers took the Ripple price back below the $1 psychological level. Looking at the wick, we can see that the buyers tried to push XRP up to $1.10 before encountering the 20-day SMA. The MACD shows sustained bearish market momentum, which shows a further drop is expected.
Image: XRP/USD daily
Looking at the 4-hour Ripple price chart, XRP has dropped from $1.047 to $0.983 over three straight bearish sessions. During this drop, RIpple has managed to flip the parabolic SAR from positive to negative, to shows that overall market sentiment is bearish.
Image: XRP/USD 4-hour
Major Win For Ripple. SEC Denied From Viewing Legal Documents Related To XRP
The US Security and Exchange Commission (SEC) had earlier filed a motion to access Ripple's legal communications regarding XRP‘s regulatory status. According to a filing, the court has denied the SEC's motion.
Magistrate Judge Sarah Netburn stated that the requested communications are protected by the attorney-client privilege. The SEC filed a complaint against Ripple last December, alleging that its sale of XRP was unregistered security offering worth more than $1.38 billion. The legal case is still in the discovery stage as both parties are battling over the information.
Judge Netburn denied SEC's motion, saying:
Ripple asserts that the SEC’s requested communications are protected by the attorney-client privilege, which has not been waived.
On May 7, the SEC moved to strike Ripple's affirmative defense as legally insufficient, arguing that the company waived their privilege over advice by raising their defense. Ripple’s defense against the SEC’s accusations is based on the assertion that the agency failed to warn the company about the fact that their cryptocurrency is unregistered security. Earlier, Ripple said"
In asserting this defense, Ripple claims that the SEC’s actions and inactions failed to provide market participants with fair notice that the agency considered XRP a security.
However, even though the court’s decision denied SEC access to Ripple´s legal advice, the judge took no position on whether Ripple's defense is cognizable.
The Court takes no position about whether Ripple’s pleaded defense is cognizable or if it will prove meritorious.
In an interview last week, Ripple CEO Brad Garlinghouse said that any initial public offering (IPO) plans are on hold until the company resolves its lawsuit with the SEC.
Ripple Price Is Expected To Reach These Levels
Looking at the daily Ripple price chart, XRP is currently on a mini-downtrend which could see it drop to the $0.80 support barrier.