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The retrace lower is complete for Ripple on the daily chart

Will Ripple (XRP) Bounce Off the 20 Daily SMA?

Posted Thursday, August 26, 2021 by
Skerdian Meta • 2 min read

Ripple coin wasn’t looking particularly strong early this year, since it missed out on the crypto market during the first few months, while many other cryptocurrencies were surging higher. The surge eventually spilled over onto Ripple as well in April, although it came a bit too late and this digital coin only appreciated around four times, increasing from $5 to almost $20, before the crash in the market sent Ripple diving lower in May.

Moving averages were broken on the daily chart, without offering much support, apart from the 200 SMA (purple) which held for about a month. But, that moving average was also broken in June, while the 20 SMA (gray) acted as resistance, pushing the price down.

Eventually, the bullish reversal came, and RIPPLE turned higher, pushing above moving averages again, after the 200 daily SMA provided resistance for some time. Ripple’s legal battle with the SEC (Securities and Exchange Commission) has been weighing on the cryptocurrency, but that is not going to decide the fate of Ripple coin.

Ripple’s senior executives consider the actions by the SEC to be ‘deliberative process privilege’ (DPP). Ripple’s legal team argues that the deposition of former SEC executive, William Hinman, and the documents the SEC is refusing to share, could “fatally undermine the SEC’s allegations that the Individual Defendants acted recklessly in failing to recognize Ripple’s sales of XRP as an unregistered securities offering, because, at that time, securities law experts of Mr. Hinman’s stature (to say nothing of the full Commission) had not reached that conclusion themselves, despite looking into the issue.”

Ripple Coin Live Chart

XRP/USD

On the other hand, there is also hope for the XRP/USD if Ripple follows through on its idea for the Federated Sidechains on the XRP Ledger. It seems like Federated Sidechains are the next step forward in the progression of cryptocurrenies into the mainstream, and Ripple is trying to be at the forefront of this development, together with Cardano.

But Ripple has been following the rest of the crypto market in recent weeks, and seems to be hesitating to push higher and continue the uptrend that started about a month ago. XRP/USD had stopped climbing by the middle of this month. close to $1.35, after the strong bullish move, and it failed on the second attempt as well. Now, Ripple coin is retreating lower, but it is facing the 20 daily SMA (gray). This moving average is acting as support right now, so we might see a bounce off the 20 SMA.

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