Ripple (XRP) remains stuck below $0.50 after a weeklong attempt to break past this stick resistance. XRPLedger’s native token has traded sideways for the past six days, broadly ignoring the big swings seen in the main crypto assets, as traders remain focused on the developments surrounding the legal battle between the payment firm and the US Securities and Exchange Commission (SEC).
Next week, Ripple is set to file its response to the SEC’s remedies-related opening brief, which argued for punitive penalties. On Thursday, Ripple CEO Brad Garlinghouse talked about the firm’s plans to bridge traditional finance to cryptocurrency.
XRP price is in a downtrend that started after the altcoin’s March 11 top of $0.7440. XRP has been stuck below $0.50 resistance this entire week, the altcoin is down 20% in the last seven days.
In the event that the current consolidation phase ends up with a further downside correction, XRP could find support at the weekly support level at $0.4188, which coincides with April 9 low. If this level breaks, the March 2023 low of $0.3720 could come into play.
Some technical indicators, however, are showing signs that the recent downtrend could reverse.
The Stochastic oscillator is an indicator that measures the current price of an asset relative to the price range. It is used to identify overbought and oversold conditions.
In XRP’s downtrend, the oscillator is near lows at 29.65, close to oversold. If the indicator drops below 20, it would generate a buy signal, allowing sidelined traders to open a trade and await a recovery.
Another technical indicator, the Accumulation/distribution (A/D) line, is trending up and shows buying interest while XRP price declines, meaning it is possible that traders are “buying the dip”. Sustained buying pressure could fuel a recovery in the altcoin.
XRP/USDT 1-day chart
If XRP price successfully closes above the $0.50 level, it could invalidate the bearish thesis. The target would be the April 11 local top of $0.6431, but before that the altcoin faces resistance at $0.50, $0.5310 (the 50% Fibonacci retracement of the drop from the April 11 top of $0.6431 to the April 13 low of $0.4188), and the psychologically important $0.60 level, which acted as support for the altcoin throughout March.