Ripple XRP Itching to Turn Bullish, With the SEC Battle Expected to Take Direction Soon

The banking industry has been quite sceptic of the cryptocurrency market since it started more than a decade ago with Bitcoin, followed by Litecoin and 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 U.S. and worldwide.

The digital asset is informally considered a commodity, but the SEC is trying to deem it a security, which would have implications on raising funds. That didn’t hurt Ripple much during the first several 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. 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 which we explained in our 2021 Ripple forecast, sending the price to $0.52. During the bullish trend moving averages were acting as support, while now the 20 SMA (gray) has turned into resistance on the daily time-frame, keeping XRP/USD bearish.

Although, the selling pressure has diminished since the middle of June, but the 20 SMA continues to remain as resistance. Now, Ripple is trying to take charge in this lawsuit. Ripple 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 U.S. Securities and Exchange Commission.

Ripple Live Chart

XRP/USD

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 being 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.