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Ripple’s (XRP) Recovery Is Steady Despite the SEC’s Lawsuit Hanging Over It.

February 10, 2021

Talking Points:

● XRP mainatins its upward momentum following a rebound from the key support at 0.35 USD.

● XRP must break through the 50% Fibonacci level to sustain the climb towards 0.75 USD.

● A correction is likely to come in to play if XRP’s recover remains capped below 0.5 USD.

XRP is making a steady recovery following its recent woes. The cryptocurrency saw a huge surge early last week however it was immediately dropped like a stone. Seeing bulls seeking support at 0.35 USD, assisted by the 50-day Simple Moving Average (SMA) on the 4-hour chart.

Currently XRP has retaken the lost ground over the 0.4 USD level and is targetting the vital obstical at 0.5 USD. This recovery is happening despite the lawsuit hanging over its head. The Securities and Exchange Commission (SEC) alleges that XRP and its top executives sold unregistered tokens to investors.

XRP say that the token is not a security but this lawsuit and other class-action cases filed against the blockchain company claim the firm breached the Securities Act.

At the time of publishing, XRP is hovering around 0.48 USD and is in touching distance of 0.5 USD. Trading above this vital level could be the turning point for XRP. Additional investors would likely join the market as the confidence in a recovery strengthens.

At the same time, XRP will have to hold above the 50% Fibonacci retracement level to support the antcipated upswing back towards 0.75 USD. The Moving Average Convergence (MACD) is suggesting that XRP is in a bullish mood. It’s key to remeber that the upswing could encounter additional obsticals at 0.6 USD and 0.7 USD before climbing even higher towards 1 USD.

XRP/USD 4-Hour Chart:

If XRP is unable to break above 0.5 USD and hold beyond the 50% Fibonacci this may lead to increasing numbers of sell orders. This could see XRP have a break down towards the 50-day SMA and 0.4 USD and may see the bearish momentum push further towards the key support at 0.35 USD.

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