The banking industry has been quite sceptical of the cryptocurrency market since it started up more than a decade ago, with Bitcoin, followed by Litecoin and then Ethereum. Ripple Labs, which is the parent company of the Ripple Coin, started raising funds in 2013, through the sale of digital assets known as XRP, in an unregistered securities offering to investors in the US and worldwide.

The digital asset is informally considered a commodity, but the SEC is trying to classify it as a security, which would have implications in terms of raising funds. That didn’t hurt Ripple much during the first few months of this year, as the positive sentiment in the crypto market kept Ripple extremely bullish, sending it pretty close to $2 by the middle of May. But XRP/USD stopped making highs back then, which was a bearish sign at a time when other cryptos like ETHEREUM and LITECOIN were making new highs, until the middle of May.

Ripple coin remains subdued by the 20 SMA on the daily chart

The crash came eventually, unfolding in two waves, once in May and again in June, as we explained in our 2021 Ripple forecast, which sent the price to $0.52. During the bullish trend, moving averages acted as support, while now the 20 SMA (gray) has turned into resistance on the daily time-frame, keeping the XRP/USD bearish.

But the selling pressure has diminished since the middle of June, although the 20 SMA remains as resistance. Now, Ripple is trying to take charge in this lawsuit, and is pushing ahead with plans to question former SEC director, William Hinman, the former head of the regulator’s Division of Corporation Finance, despite opposition from the US Securities and Exchange Commission.

Ripple Live Chart

So, it seems like the selling pressure is diminishing in Ripple, as in most of the crypto market, which is a sign that the bearish momentum is coming to an end. The 20 daily SMA is still causing a bit of a headache, as it keeps pushing down, but once the sentiment improves in the market, buyers will take control and the larger bullish trend will resume again.