XRP price climbed 3.70% in the past week and declined slightly on Monday as the SEC v. Ripple lawsuit entered its final week of the discovery phase. The Court granted Ripple’s request for extension of remedies-related discovery deadline from February 12 to 20.
The payment remittance firm is likely compiling its financial statements and institutional sales contracts for the Securities and Exchange Commission (SEC), this week. The payment giant’s lawyers previously stated that the SEC’s request for information is burdensome and Ripple needs time to compile the information.
A crypto expert analyzed the SEC v. Ripple lawsuit and identified seven possible ways in which the lawsuit could end.
Also read: XRP price could deteriorate with Ripple’s request for deadline extension in SEC lawsuit
XRP price dipped slightly on Monday, however the technical indicators show that the altcoin is likely to rally. XRP price is $0.5223 on Binance, at the time of writing. The green bars on the Awesome Oscillator (AO) and the Moving Average Convergence/ Divergence (MACD) support the thesis of gains in XRP price.
XRP price faces resistance at R1, $0.5629. This level is key to XRP since it represents the 50% Fibonacci Retracement of the decline from the 2024 high to the January 31 low of $0.4853. A rally to R1 represents nearly 7% gains in XRP.
The support for XRP price is $0.4968, just below the psychologically important level of $0.50.
XRP/USDT 1-day chart
A daily candlestick close below the support at $0.4968 could invalidate the bullish thesis for XRP price. If XRP price plummets, it could dip to the January 31 low of $0.4853.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.