Ripple price analysis: XRP/USD supported above $0.8; Ripple facing a securities violation lawsuit

The cryptocurrency market is quite bearish on Monday as most of the charts are painted red. Ripple price is not spared, in fact, it is down 5.5% in the last 24 hours. But the good news is, the cryptocurrency is well supported above $0.80 level. At the same time, the upside has been capped below $0.875.

In other news related to Ripple, a former investor, Ryan Coffey who lost money while trading Ripple has been reported to have taken the digital company to court “on behalf of all investors who purchased Ripple tokens.” The class action lawsuit alleges that:

“Defendants have since earned massive profits by quietly selling off this XRP to the general public, in what is essentially a never-ending initial coin offering (‘ICO’). [...] In order to increase demand for XRP, and thereby increase the profits it can derive by selling XRP, Ripple Labs has consistently portrayed XRP as a good investment, relayed optimistic price predictions, and conflated Ripple Labs’ enterprise customers with usage of XRP.”

Ryan Coffey claims that XRP is a security that is not registered, however, Ripple has maintained over and over again that it is not a security token. Besides, the SEC status on which tokens are securities and which are not is still unclear. In his argument, Coffey says that XRP is a security because “purchasers reasonably expected to derive profits from their ownership” of it.

Ripple price analysis

Ripple is trading below the ascending bullish trend line, although the moving averages have crossed $0.86 signalling that an upside break is on the horizon. The buyers are targeting $0.85, besides, $0.9 is still within reach, but Ripple must find a catalyst in the near-term. The RSI on the 240’ chart is at 34 level while it is starting to point upwards to signal the return of the bullish force during the intraday trading. The next support for XRP/USD is at $0.80, although below this, other support levels are highlighted at $0.7 and $0.65 respectively.

XRP/USD 240’ chart