Ripple (XRP) price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.
The first issue is the fines to be imposed on the payment firm for alleged violations of securities laws by sale of XRP to institutional clients. The second is the issue of “disgorgement” or ill-gotten gains from different discounts offered to Ripple’s institutional clients.
have a listen. The SEC wants to make Ripple ‘s sophisticated institutional customers richer at Ripple’s expense by the remedy of disgorgement. This is just one anomaly of many of this crazy lawsuit that is literally protecting nobody. https://t.co/pSwrURfxAB
— bill morgan (@Belisarius2020) May 14, 2024
Ripple price is in a state of decline since last week as XRP wiped out nearly 13% of its value since the May 6 high of $0.5703. XRP has sustained above support at $0.50 since then, however, the Moving Average Convergence Divergence (MACD) indicator shows negative momentum in the altcoin’s price trend.
The red histogram bars below the neutral line and the crossover of the signal line above MACD on Sunday support a bearish narrative for XRP.
Relative Strength Index (RSI) reads 40.72, still far from oversold levels and leaving more room for a further decline.
XRP could sweep support at $0.4717, the 23.6% Fibonacci retracement of the decline between the April 9 top of $0.6431 and the April 13 bottom of $0.4188. This would mark a nearly 6% correction in Ripple price from current levels.
XRP/USDT 1-day chart
Looking up, a daily candlestick close above $0.5045, the 38.2% Fibonacci retracement of Ripple’s decline between April 9 and April 13, could invalidate the bearish thesis. XRP could rally towards the resistance at $0.5310, the 50% Fibonacci retracement of the aforementioned movement.
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