San Diego resident Ryan Coffey lodged a lawsuit against Ripple Labs, its CEO, and subsidiary. The plaintiff alleges that the defendants have violated the state and federal securities laws, engaging in schemes to raise hundreds of millions of dollars through the sale of unregistered ripple tokens (XRP).

Contemplating this news, XRPUSD has formed spinning top followed by gravestone doji pattern have occurred at 0.8544 and 0.8538 levels respectively (refer 4H chart). As a result, you can easily make out the considerable steep slumps below 7SMAs.

For now, we could foresee more slumps on bearish SMA and MACD crossovers that indicates downswings likely to extend further.

This bearish sentiment is substantiated by leading oscillators, both RSI and stochastic curves are showing downward convergence to indicate the strength and the bearish momentum in these prevailing price dips. We could see next strong support levels at 0.8025 marks.

Hence, it is wise to snap any deceptive rallies to deploy shorts contemplating above-stated both fundamental as well as technical driving forces.

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