XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
The other key catalyst influencing XRP price, which is testing critical support at $0.50, is the lawsuit that Ripple faces against the Securities and Exchange Commission (SEC) vs. Ripple over whether the sales of XRP to institutional investors are considered an unregistered sales of securities. The two parties have filed their motions, opposing motions and supporting evidence in the remedies phase, and now await a ruling on the penalties to be imposed on Ripple for this alleged violation of securities laws.
The XRP price has fallen 2.7% so far this week, but it has maintained above the key support of $0.50, which aligns with a psychological level. Amid the sideways trend that Ripple has experienced in the last few weeks, momentum indicators can give clues about the next likely move.
Two important momentum indicators give contradictory views in XRP’s case. The Relative Strength Index (RSI) falls to around 40 in all three major charts (weekly, daily and 4-hour), suggesting that bullish momentum appears to be waning. However, the Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, signaling a positive momentum in XRP price trend.
If selling pressure persists, Ripple is likely to suffer an 8% correction and sweep liquidity at the weekly support level at $0.4665 seen on April 19. Two key levels that have been respected since mid April stand out on the weekly time frame– support at $0.4665 and resistance at $0.5630.
XRP/USDT 1-day chart
A daily candlestick close above $0.53, the 50% Fibonacci retracement level of the decline from April 9 top of $0.6431 to the April 13 low of $0.4188, could invalidate the bearish thesis. In such a case, XRP would face the next resistance at $0.5630, the weekly resistance level set on April 6.
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