Holding on to our Buy Ripple Trade, as it Finds Support at the 50 SMA
Ripple coin is bouncing off the 50 SMA for the second time on the H4 chart, suggesting a bullish reversal
The Ripple coin has turned quite bullish in the last week or so. The XRP/USD was showing signs of weakness for several months, since it stopped making new highs in April, while many other cryptocurrencies kept pushing to record highs until May.
It also kept making new lows in June, after the crash in May, while again, other cryptos were making higher lows, suggesting buying pressure, which we were not seeing in RIPPLE. The reversal took place towards the end of July, as we highlighted in our 2021 Ripple forecast, but the bullish momentum in Ripple was still weak, having only gained around 50% until early last week, while many other cryptos had gained close to or more than 100%.
Ripple Coin Live Chart
Ripple Fundamental Analysis – XRP-SEC Lawsuit
Ripple is currently carrying a heavy burden, in the form of the SEC (Securities and Exchange Commission) lawsuit, which is taking new turns now. The SEC has asked for slack messages sent by the Ripple staff for the past decade, but it seems like the leading team at Ripple is refusing to comply. Ripple submitted a formal objection to the request by the SEC.
Ripple’s defense lawyers said, in a comment, that “in responding to the SEC’s blizzard of discovery, Ripple collected over 11 million documents, representing nearly 10 terabytes of data, reviewed over 300,000 documents for responsiveness, and produced over 165,000 documents. The SEC’s demand is all the more unreasonable when considered against this backdrop.”
Ripple Technical Analysis – Buying XRP/USD on the H4 Chart?
Ripple bouncing off the 50 SMA for the 2nd time today
Ripple broke below the 20 SMA (gray) on the H4 chart yesterday, and today it accelerated its decline, falling from around $1.35 to $1.05. But, the 50 SMA (yellow) came to its rescue and stopped the XRP/USD from declining further. Ripple coin bounced off that moving average yesterday, and is now bouncing for a second time, which suggests that there is strong buying pressure at that moving average.
Ripple has bounced nearly 10 cents higher off the lows now, so the reversal might be underway. We are holding onto our buy Ripple signal here, since the overall sentiment in the financial market has been quite bullish, and this profit-taking might be a good opportunity to go long for those who are still out of this trade.
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