Ripple coin was among the biggest losers during the bearish period in the crypto market in the previous three months, losing nearly 75% of the value from the top at $1.97. In fact, it was showing bearish signs since it failed to make new highs in May, when a number of other cryptocurrencies kept making record highs.
Ripple coin fell to almost $0.50 according to my crypto broker’s platform, where it formed a base, with the legal battle against SEC (Securities and Exchange Commission) in the US also weighing on Ripple coin. But, the support area above $0.50 held well, and Ripple bounced off of it when the crypto market finally turned bullish more than a month ago
The 50 SMA seems like a good place to buy, as it keeps pushing Ripple coin up
Although, after finding resistance below $0.78 for some time, XRP/USD moved higher and turned quite bullish on the second week of August. Even the 20 SMA (gray) wasn’t able to catch up with the price, as Ripple buyers pushed it to $1.35.
Early last week we saw a retreat in the crypto market, which for Ripple was worth $0.30, meaning that it lost more than 20%. That is not a good sign for RIPPLE coin, since it suggests that sellers are also quite strong here, while today’s price action is not that bullish either, compared to other cryptocurrencies.
Bitcoin broke above $50,000 today, Ethereum is testing this month’s highs, while Ripple is well below the highs. It is finding it hard to overcome the $1.30 level at the moment.
SEC requested slack emails from Ripple Labs employees earlier, which took this lawsuit in another direction which will last for at least several months, as SEC put it. Last week, the government watchdog Empower Oversight Whistleblowers & Research (Empower Oversight) announced that it has submitted a request under the Freedom of Information Act (FOIA) to the USEC “seeking communications between SEC officials and their current and former employers.” So, the legal situation is getting complicated although given that it will last a long time, Ripple and Ripple buyers shouldn’t be too worried for now. So, we’re keeping our buy Ripple signal, but a retreat to the moving averages below around $1,19-20 would be a good place to consider buying XRP/USD for those who are out of this trade yet.