XRP price drops below $0.55 after Ripple CEO Slams SEC

The XRP price is down 3.5% over the last 24 hours to trade at $0.54724 as of 3:30 am ET. This downward move comes a day after Ripple CEO Brad Garlingouse's comments on the ongoing case between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).

Garlinghouse believes that the international remittances firm has won on a number of key issues in the ongoing SEC vs. XRP case. The executive could be referring to Judge Analisa Torres's July 13 ruling stating that XRP was not considered a security in its secondary market sales. The price of XRP rose immediately to set a swing high of around $0.95.

In an interview with Bloomberg on Tuesday, Garlinghouse said that the SEC has consistently lost its crypto-related lawsuits against Coinbase crypto exchange and Grayscale asset management firm.

The Ripple CEO shared his thoughts on how the San Francisco-based crypto firm has faced regulation by enforcement and through court rulings. He welcomed Ripple ETF and voiced his opinion on its possibility during the interview.

Garlinghouse added his voice to those calling for clarity on crypto regulation, arguing that the SEC is likely to realize sooner rather than later that it has consistently lost its lawsuits against crypto firms.

XRP price risks a 10% drop to areas below $0.5

The XRP price action formed a rounded bottom chart pattern in the daily chart, as shown below. The price, however, faced rejection from the supplier congestion zone between $0.55 and $0.56, where all the major exponential moving averages (EMAs) currently sit.

As a result, the cross-border token dropped below the support line of the prevailing chart pattern on Feb. 21. Increased selling from this level would see XRP drop first to $0.52 and later to the pattern's bottom at $0.49. Such a move would represent a 10% decline from the current price.

XRP/USD daily chart. Source: TradingView

The downward-facing relative strength index (RSI) supported the correction in XRP's price.

On the upside, a daily candlestick close above the 50-day EMA at $0.55 would mean that the buyers are aggressively defending this level. The bulls would then need to overcome the barrier at $0.559 (200-day EMA) and $0.562 (100-day EMA) to avoid further losses.

The next move would be to push the price above the neckline of the governing chart pattern at $0.577, to confirm a bullish breakout targeting a rally to $0.65. This would bring the total gains to 20% from the current levels