Ripple (XRP) remains stuck below $0.50 after a weeklong attempt to break past this stick resistance. XRPLedger’s native token has traded sideways for the past six days, broadly ignoring the big swings seen in the main crypto assets, as traders remain focused on the developments surrounding the legal battle between the payment firm and the US Securities and Exchange Commission (SEC).
Next week, Ripple is set to file its response to the SEC’s remedies-related opening brief, which argued for punitive penalties. On Thursday, Ripple CEO Brad Garlinghouse talked about the firm’s plans to bridge traditional finance to cryptocurrency.
XRP price is in a downtrend that started after the altcoin’s March 11 top of $0.7440. XRP has been stuck below $0.50 resistance this entire week, the altcoin is down 20% in the last seven days.
In the event that the current consolidation phase ends up with a further downside correction, XRP could find support at the weekly support level at $0.4188, which coincides with April 9 low. If this level breaks, the March 2023 low of $0.3720 could come into play.
Some technical indicators, however, are showing signs that the recent downtrend could reverse.
The Stochastic oscillator is an indicator that measures the current price of an asset relative to the price range. It is used to identify overbought and oversold conditions.
In XRP’s downtrend, the oscillator is near lows at 29.65, close to oversold. If the indicator drops below 20, it would generate a buy signal, allowing sidelined traders to open a trade and await a recovery.
Another technical indicator, the Accumulation/distribution (A/D) line, is trending up and shows buying interest while XRP price declines, meaning it is possible that traders are “buying the dip”. Sustained buying pressure could fuel a recovery in the altcoin.
XRP/USDT 1-day chart
If XRP price successfully closes above the $0.50 level, it could invalidate the bearish thesis. The target would be the April 11 local top of $0.6431, but before that the altcoin faces resistance at $0.50, $0.5310 (the 50% Fibonacci retracement of the drop from the April 11 top of $0.6431 to the April 13 low of $0.4188), and the psychologically important $0.60 level, which acted as support for the altcoin throughout March.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.