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- An old Ripple lawsuit is in the news again, first hearing held, next in May.
- Zakinov Vs Ripple hearing can cast a shadow over XRP price, or be its jet fuel.
- XRP fell by about 16% from its latest peak.
Ripple is dealing with another lawsuit which was filed prior to the infamous Ripple versus SEC lawsuit, with both pulling XRP down. The Zakinov versus Ripple is a lawsuit filed in 2018 accusing Ripple for selling XRP as unregistered securities. The combined effect of Ripple v/s SEC and the new Ripple v/s Zakinov can have a cascading effect on XRP price. The class certification hearing was held on April 26, 2023. The next date is May 8, when plaintiff Zakinov’s expert disclosures are due. XRP price may witness agony due to the burden of two ongoing lawsuits.
The Monoscopic View
XRP price forms a possibility of bearish flag, with the recent fall as pole, followed by a sideways consolidation. The trading volume shows a rise in selling interest, pushing the investors towards panic sell off. The cascading effect of the lawsuits can send XRP price into substantial downtrend in the coming days. The projected breakout can occur if the prices breach the support near $0.4465.
The price marked a fall of about 16% since its latest peak. The Bollinger Bands diverge due to recent volatile movement in XRP price. The downward sloping OBV indicates an unfavorable market for the Ripple. The current price action takes place in attempts to capture the EMA ribbon. The downtrend establishes a pessimistic outlook for Ripple amid the ongoing lawsuits.
The recent dip in XRP, breached the bullish trend being formed in Super Trend due to the positive speculation of Ripple winning the SEC lawsuit. The current downtrend can further drop in the coming days. The CCI moves about negative 90-range to signify the contracting gap between present price and historical prices. The MACD forms a negative crossover and records tall seller bars to display active seller participation. The RSI moves in the 40-range after falling from 60-range to reflect stagnant seller interest.
The Microscopic View
In the smaller time frame, XRP shows a choppy downtrend as the price floats around the demand zone. The Super Trends show a flat bearish momentum, matching the consolidation phase. The CCI moves closer to the zero-mark to indicate the decreasing difference between the historical prices and XRP price at press time. The MACD nears a convergence and records drained buyers in the market. The RSI moves horizontal to the half line and mirrors a neutral market.
Conclusion
The lawsuits against Ripple can cast a dark shadow over XRP price and induce a robust bear trend sending prices nosediving. The trading volume suggests rising seller sentiments in the light of the hearing. The bear trend may stretch till either of the lawsuits reaches conclusion. The holder can keep an eye at the support near $0.4465.
Technical levels
Support levels: $0.4465 and $0.3995
Resistance levels: $0.5325 and $0.5815
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
