- Ripple price has healthy support at $0.53.
- XRP has flashed multiple buy signals in the 4-hour chart.
- Ripple has flipped the parabolic SAR from negative to positive.
- XRP has reversed the 20-day SMA from resistance to support.
- The MACD indicates increasing bullish market momentum.
The RIpple price has crashed from $0.695 to $0.533 between July 5 and July 20. Having encountered continuous resistance at the 20-day SMA. Previous, on July 17, Ripple charted the death cross with the 200-day SMA crossing over the 50-day SMA. Let’s take a closer look at what happened.
Ripple Price No Longer Oversold
This Wednesday, the buyers took control of the Ripple and pushed up the price from $0.53 to $0.57. Prior to this jump, XRP was oversold since the relative strength index (RSI) was hovering below 30 and the price was trending underneath the Bollinger Band. However, both these metrics have normalized ever since.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple Price has flashed three positive signals:
Image: XRP/USD 4-hour
XRP Lawsuit Update
Ripple-SEC lawsuit defendants Brad Garlinghouse and Chris Larsen have used the recent observations made by SEC Commissioners Hester Peirce and Elad Roisman to reiterate an old defence with their latest filing.
“The Public Statement further supports the Individual Defendants’ motion to dismiss for failure to adequately plead that they allegedly aided and abetted Ripple’s offers or sales of unregistered securities.”
These observations were about the regulators commenting on “regulatory uncertainty” in the context of the SEC’s actions in the Coinschedule case. The SEC fined Coinschedule and its parent company Blotics for promoting initial coin offerings. The company reportedly received funds from token issuance as well.
In their public statement, SEC Commissioners Hester Peirce and Elad Roisman had observed that:
“The only certainty we see is that people have questions about how to comply with the applicable laws and regulations.”
The Commissioners also noted the “large number of factors and absence of weighting cut against the clarity the guidance was intended to offer,” adding that applying rules to a “completely different token offering does not necessarily produce clear answers.”
Finally, the duo also pointed to the “decided lack of clarity” around the application of securities law, adding that the Howey Test is also “not crystal clear.” Given the position assumed by the two SEC commissioners, it’s no surprise that there’s optimism around Ripple’s legal defense.
The letter can also be read in the context of Ripple’s Fair Notice defense. A few months ago, Judge Netburn had ruled that the same was centered on the SEC’s activities, not the defendants’ behavior or knowledge, contrary to the agency’s contention that such a defense “fails as a matter of law.” Attorney Jeremy Hogan noted:
“If the Fair Notice defense survives and Ripple wins, the SEC is going to have an uphill battle winning any other lawsuit they bring.”
Ripple Price Is Expected To Reach These Levels
The Ripple price will need to reach the $0.60 psychological level to flip the 20-day SMA from resistance to support.