Ripple (XRP) dipped to $0.51 low on Wednesday, erasing its gains from earlier this week. The Securities and Exchange Commission (SEC) filing is now public, in its redacted version. Ripple and the SEC have completed their filings and brought supporting evidence, the lawsuit moves to the next phase where related parties file omnibus letter motions.
The motion will seal or redact remedies-related filings and supporting evidence by the May 13 deadline.
Ripple could extend its losses by another 3.35% from the current price of $0.5217, down to $0.5045. This level is the 38.2% Fibonacci retracement of Ripple’s decline from April 9 top of $0.6431 to April 13 low of $0.4188.
May 1 low of $0.4782 could act as support for XRP in the event of further decline.
While the histogram bars on the Moving Average Convergence Divergence (MACD) indicator are above the neutral line, it points at waning positive momentum.
XRP/USDT 1-day chart
A daily candlestick close above $0.5310, the 50% Fibonacci placeholder could invalidate the bearish thesis. XRP could face resistance at the $0.5574 level, the 61.8% Fibonacci retracement of the decline between April 9 and 13.
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.