Another day, another lawsuit for Ripple; XRP/USD down 7% amid spiking trading volumes

Ripple, the third largest coin by market value, is changing hands at $0.5800, down over 7% since this time yesterday.  The coin touched $5550 low on Sunday before buyers came and triggered a short-term recovery. The digital currency lost over $2B of its market value, while the trading volumes spiked to $500M from $179M on Saturday.

Meanwhile, Ripple Company has become a part of another litigation tied to XRP. Vladi Zakinov filed a class action lawsuit against Ripple Labs, XRP II, CEO Brad Garlinghouse and another 25 unnamed persons. He bought XRP in January and lost a lot of money as the coin is down 70% since the beginning of the year. Now Zakinov claims that XRP token is a security controlled by Ripple, while the defendants "made a series of improper statements which drove up the price of XRP,"

Ripple technical picture

Technically, XRP/USD needs to stay above $0.5600. this support is created by 78.6% Fibo retracement level and considered to be critical for the coin. Once it is broken., the selling pressure will increase, taking the price all the way down to $0.4500 (April's low)  On the upside, a sustainable movement above $0.6470 (61.8% Fibo) is needed to mitigate downside pressure. It is followed by psychological $0.6800 and $0.7000.

XRP/USD, the daily chart