Ripple Technical Analysis: XRP Drops After Failing At The 20-day SMA

Daily Ripple XRP Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Ripple price has had two straight bearish sessions in the daily chart.
  • XRP has flashed multiple sell signals in the 4-hour chart.
  • After encountering resistance at the 20-day SMA, the Ripple price has crashed from $1.04 to $0.827 between June 4 to June 12. Following this crash, XRP has been trending horizontally between crucial levels. Let’s take a close look with technical analysis.

    Ripple Price Has Two Straight Bearish Sessions

    On June 12, the Ripple price flashed a buy signal in the form of a red-nine candlestick and then bounced up to $0.89 till June 14. Over there, XRP faced resistance at the 20-day SMA and dropped to $0.845 over the next two days. The relative strength index shows us that the buyers and sellers have pretty much canceled each other out. 

    Image: XRP/USD daily

    XRP/USD daily chart 061721

    In the 4-hour time frame, the Ripple price has flashed three different sell signals:

    1. XRP has managed to flip both the 20-day and 50-day SMAs from support to resistance.
    2. The MACD shows increasing bearish market momentum.
    3. The parabolic SAR has reversed from positive to negative.

    Image: XRP/USD 4-hour

    XRP/USD 4-hour chart 061721

    SEC not allowed to access Ripple’s recent XRP transactions

    A judge has recently denied the US Securities and Exchange Commission’s request for documents related to Ripple’s XRP transactions and lobbying efforts that took place after the SEC filed its lawsuit last December, as per a new legal filing. US Magistrate Judge Sarah Netburn wrote:

    As discussed in the Court’s earlier Opinion and Order denying access to Ripple’s privileged communications, Ripple’s fair notice defense centers on the activities of the SEC, not its own behaviors.  

    Netburn also cited her ruling last month, saying that Ripple focuses on the SEC’s failure to provide fair notice to the market about the Commission’s state of mind as to whether XRP qualified as security. "It is not clear that such a defense even requires that a defendant act in good faith," she had added.

    However, Netburn partially granted the SEC’s request for additional depositions, allowing the agency to seek information directly from many former Ripple employees. This included Ron Will, Ethan Beard, Phil Rapoport, Ryan Zagone, and Christian Gil, the co-founder of GSR. But, she denied the SEC’s request for a sixth deposition to “cover any gaps in knowledge that these witnesses may have” without prejudice, saying it was “unripe.”

    The judge also granted the SEC’s request for Ripple to produce documents from Ryan Zagone, Ripple’s former head of regulatory affairs, and Cameron Kinloch, Ripple’s Head of Finance. However, she ruled that the records of Ripple’s general counsels and deputy general counsel are off-limits “as the Court interprets these requests to be highly burdensome, likely to be mostly privileged communications, and unreasonably cumulative or duplicative of searches already performed.”

    The SEC filed a lawsuit against Ripple last December, alleging that its sale of XRP was an unregistered security offering worth over US$1.38 billion. The SEC also named Ripple’s CEO Brad Garlinghouse and executive chairman Chris Larsen as co-defendants for allegedly aiding and abetting Ripple’s violations. 

    Earlier this week, Netburn granted the SEC’s request to extend the deadlines for fact discovery and expert discovery by August 31 and October 15, respectively. She also approved a request by Garlinghouse and Larsen to obtain information from 16 crypto exchanges outside the US.

    Ripple Price Is Expected To Reach These Levels

    As things stand, the Ripple price is going to keep hovering between the $0.826 support wall at the 20-day SMA.

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