Ripple coin has been one of the most bearish cryptocurrencies since April last year. It failed to make new highs in May, and the highs got lower in Q3 of last year when the crypto market was surging higher, and most digital coins were printing new all-time highs.  The highs fell from below $2 in April last year, to $1.70 in May, to $1.40 in September and $1.35 in November, and now it seems like the latest high is going to be the area around $0.90.

Ripple Technical Analysis – XRP Daily Chart

The 200 SMA turns from support to resistance 

XRP/USD fell to $0.55 after being bearish for the last three months, as the sentiment in the crypto market turned negative, although it formed a support zone around the $0.60 level. The support held for about a week at the end of January, and last week we saw a surge higher, which took the price to $0.91. Although, the surge stopped right at the 200 SMA (purple) on the daily chart.

This moving average has acted as support before, and now it has turned into resistance. Wednesday’s doji candlestick indicated a bearish reversal after the climb, and yesterday’s daily candlestick looks bearish. Therefore, the technical picture is indicating a bearish reversal for XRP, and judging by the history of lower highs, this looks to be it, so we decided to open a sell XRP/USD signal.

Ripple Fundamental Developments

The main reason for Ripple being bearish is the lawsuit with the SEC (Securities and Exchange Commission) in the US, which has left the legal future uncertain for Ripple. However, there have been some positive developments in this case, which have added to the bullish momentum for XRP.

Presiding judge Analisa Torres has ordered the release of a set of documents, which could strengthen the case for Ripple. The documents expose an important flaw in the SEC case against Ripple, which is a positive thing for the XRP coin, hence a bigger surge than the market average over a one-week period.

After entering Bangladesh regarding remittance transfers, Ripple continues to expand, this time to increase the payment efficiency in Europe, in a partnership with Modulr Finance. Recently, Ripple announced that it has repurchased shares from its $200 billion Series C funding round, it had sold in 2019, which indicates confidence that the case with the SEC will have a positive outcome in favour of Ripple. But, the case with the SEC will continue to drag on a bit, so I don’t think it will climb above $1.

Ripple Coin XRP Live Chart