Ripple crashes below critical support as SEC files a lawsuit against Ripple

  • The SEC accuses Ripple of illegal securities sales.
  • XRP loses over 25% of its value in a matter of hours.

XRP dropped to the intraday low of $0.33 during early Asian hours amid news that the U.S. Securities and Exchange Commission (SEC) has officially filed a lawsuit against Ripple and its executives. 

The regulator accuses the San-Fransisco-based fintech startup of illegally selling unregistered securities worth $1.3 billion to finance its business operations. According to the SEC's complaint, the company and its creators offered XRP to investors in the U.S. and worldwide to achieve its objectives. 

Notably, the head of the company, Brad Garlighouse, said they would be sued by the SEC in a recent interview. He claimed that Ripple was ready to defend its position in court.

XRP is staring into the abyss

At the time of writing, XRP is changing hands at $0.36. Despite the recovery from the intraday lows, the coin lost nearly a quarter of its value on a day-to-day basis to become the worst-performing altcoin out of the top-10.

From the technical point of view, XRP recovered from the daily EMA100 at $0.35. This area may serve as a backstop for the price and allow for a un upside correction. However, only a sustainable move above $0.45 will mitigate the bearish pressure and allow for an extended recovery. As FXStreet previously reported, this barrier is created by an x-axis of the now broken descending triangle pattern. 

XRP, daily chart

XRP, daily chart

A failure at daily EMA100 will increase the downside pressure and open up the way to the psychological $0.3, reinforced by the daily EMA200. Also, it is an estimated bearish target from a descending triangle breakdown. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Solana price needs to crack this key level as SOL bulls eye an upswing towards $200

Solana is seeing some buying resurgence on Saturday, as it reverses Friday’s temporary drop to near the $127.50 region. Solana price is teasing a falling wedge breakout on the daily chart. SOL bulls need to find acceptance above $148 to initiate a fresh upswing.

More Solana news

MATIC price defends 200-DMA as Polygon bears keep $0.95 in sight

MATIC price is consolidating the swift recovery seen on Friday. Bearish crossover and RSI suggest that the downside remains favored for MATIC. Polygon needs a sustained move above the 100-DMA to negate the bearish bias.

More Polygon News

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point as DOT awaits a range breakout

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance, 50-DMA guards the downside.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast