XRP tests resistance at $0.52 as Ripple developers propose lending on XRP Ledger

• Ripple sees XRP Ledger developers propose direct lending on the blockchain, no smart contracts involved. 
• XRP attempts to break past and close above $0.52 resistance for the sixth consecutive day. 
• XRP holders keep eyes peeled for SEC reply brief, deadline is May 6. 

Ripple (XRP) has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s (SEC) response to Ripple in its filing that addressed the issue of “expert testimony.” Traders now have their eyes peeled for the court’s decision on the next major concern, the $2 billion fine proposed by the SEC and Ripple’s counter of $10 million. 

XRP Ledger developers have proposed the introduction of direct lending on the blockchain, without the involvement of smart contracts. The proposal has garnered interest in the XRP holder community. 

Daily Digest  Market Movers: Ripple holders await May 6 deadline while XRP Ledger proposes new development 

• Ripple uses the decentralized public blockchain, the XRP Ledger for its cross-border payment settlement. 
• XRP Ledger’s developers have proposed the introduction of direct lending to users using the Ledger, without developing a smart contract application. Developers propose the introduction of a mechanism for fixed-term, interest-accruing loans pooled from collective funds without requiring on-chain collateral. 
• The proposed approach relies on off-chain underwriting and risk management and what developers refer to as a “First-Loss Capital protection scheme” to secure the protocol.

• The proposal has garnered interest from traders and is still in its initial stage, as XRP holders and the developer community share inputs on the idea. 
• The SEC vs. Ripple lawsuit has been a major catalyst for XRP since 2020. XRP holders have digested the news of SEC’s response to Ripple, where the regulator addressed the concern surrounding “expert testimony.”
• The major issue in the lawsuit is the $2 billion fine proposed by the SEC and Ripple’s counter of $10 million. 
• The SEC must file its reply brief by the May 6 deadline and this is likely to be the last court submission before Judge Analisa Torres decides upon the penalty to be imposed on the payment remittance firm, for unregistered securities sale. 

Technical analysis: Ripple tackles resistance at $0.52 

Ripple is faced with sticky resistance at $0.52. The altcoin has attempted to close past this level for five consecutive days with no success. In the weekly time frame, XRP price could decline further. There is a bearish crossover, where the signal line crosses over the Moving Average Convergence Divergence indicator, on the weekly chart, on April 8. 

On the daily timeframe however, on April 22, the MACD line crossed over the signal line, supporting a recovery in XRP. 

The $0.4868 level emerges as key support for XRP, on the weekly time frame. 

This level has been respected as support since mid April, making it key to XRP recovery. A daily candlestick close below this level could invalidate the thesis of recovery. 

XRP faces resistance at $0.5310, and $0.5574, the 50% and 61.8% Fibonacci retracement levels of the decline between April 9 and 13. $0.5787 is a key resistance level on the weekly chart. 

XRP/USDT 1-day chart 

XRP could find support at $0.4868 (weekly support) and April 19 low of $0.4665 in the event of further correction in Ripple.