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  • XRP/USD is losing ground amid growing selling pressure.
  • News about the lawsuit against Ripple hit the market.

XRP/USD is trading at $0.4618 by press time with downside momentum gaining pace. The third largest coin by market value lost nearly 5% on a daily basis and over 3% since the start of the day. XRP’s market value is registered at $18.3B, with the average daily trading volume of $259M.

The news wires spread the word about the third legal class action lawsuit against Ripple Labs and its  CEO Brad Garlinghouse and the news seems to start having a toll on the coin’s price. The company is accused of  fraudulent  promotion practices and illegal security issuance. SEC has yet to air its views on the problem, but if the lawsuits piling up against the company, makes traders nervous.

From the technical point of view, the local support comes at $0.4500. If it is cleared, the sell-off may be extended towards $0.4240, which is the lowest level since June 29. The coin is trading below all intraday moving averages with clear bearish touch. A sustainable movement above ).4850 (confluence  of 100 and 50-MAs, hourly chart) is needed to  mitigate  the selling pressure and open the way towards critical $0.50.  

XRP/USD, 1-hour chart