Ripple’s XRP appears to be making a cautious and gradual attempt at recovery on Wednesday, after reclaiming the $0.90 level following a brief dip under it a few hours ago. At the time of writing, XRP/USD is trading around $0.92.
Moves in the overall crypto market remain subdued on account of a somewhat risk averse mood among global investors amid the potential debt default crisis looming over China’s Evergrande. With the deadline coming up on Thursday, it is likely that investors will stay away from cryptocurrencies until they gain a clearer picture on the implications of this development on global markets.
Latest Developments in Ripple vs. SEC Lawsuit
Meanwhile, XRP is likely to experience considerable volatility in the short term owing to some interesting developments in the lawsuit between Ripple and the SEC. In a potential blow to the company, Judge Sarah Netburn struck down Ripple’s demands to access information on crypto trading activities and XRP holdings of SEC employees. In her denial, Judge Netburn observed, “because the preclearance process does not consider whether an asset is a security, [Ripple has] not shown that such individual trading decisions bear on the issues in this case.”
Meanwhile, in a recent interview with Fox Business, Ripple’s legal team maintains that the company has no plans to enter a settlement with the agency and is confident of their position. Ripple insists on standing up to the SEC and wants the case to go to trial in order to bring about more equitable reform to the entire crypto industry.
Ripple’s XRP could enjoy some support from emerging news that the company may be looking to launch a market-making platform for its cryptocurrency. The development was reported recently by CoinDesk, although an official spokesperson for the company has denied these plans at the moment. A market-making platform would boost the utility and liquidity of XRP, protecting it even if other crypto exchange delist it based on the outcome of the lawsuit.
Key Levels to Watch
On the 4-hour chart of XRP/USD, almost all moving averages and leading technical indicators MACD and momentum are exhibiting a strong bearish bias at the moment. The price of Ripple’s XRP is also looking quite weak, sitting not only under the pivot point at $1.06 but also under support levels at $1.00 and $0.96.
An uptick in buying interest could see XRP head towards the second support level and rise above it. However, if more sellers enter the market soon, we could see Ripple’s XRP test the last support level at $0.85.