Ripple (XRP) loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission (SEC) filing of opposition brief to Ripple’s motion to strike expert testimony.
In March, the regulator had offered new expert testimony in its opening brief, asking for an injunction (a court order restricting an entity from certain actions) from selling XRP to institutional investors.
The ETHgate controversy, a conspiracy theory that Ethereum received a free pass from US regulators has resurfaced. Ripple’s Chief Technology Officer (CTO) David Schwartz debated its impact on the litigation against the payment remittance firm.
You don’t think any of that is even evidence that his interest in S&C was intended to, and did, influence factors that affected the litigation against Ripple at all?
— David “JoelKatz” Schwartz (@JoelKatz) April 28, 2024
Ripple is exchanging hands at $0.50, early on Monday. The altcoin has erased recent gains from the past seven days. There were two confirmed (confirmed by RSI drop to oversold zone) high momentum breakouts on April 12 and April 13, as seen in the XRP/USDT 1-day chart. This offered sidelined traders the opportunity to enter, with the first entry at $0.50, second at $0.4786 (close of April 13) and the third at $0.4188 (low of April 13 candlestick).
For traders who missed this setup previously, the opportunity presents itself again, with XRP back at $0.50. A bullish trend reversal is likely as the altcoin dipped into the oversold zone on the Connors RSI indicator, on two instances, mapped out in the chart.
Connors RSI (CRSI) is a composite of the Relative Strength Index (RSI), UpDown Length, and Rate-of-Change. The momentum oscillator ranges from 0 to 100, and is used to identify overbought and oversold conditions of an asset. An oversold condition is typically considered a “buy signal” when combined with high momentum breakouts in price.
The bullish target is 22.5% gains from $0.50, the upper boundary of the trend-following indicator, the Donchian Channel at $0.62. The channel is useful to identify breakouts on either side to trigger an entry.
XRP/USDT 1-day chart
A daily candlestick close below the April 20 low of $0.49 (acted as support for the past nine days) could invalidate the bullish thesis for XRP price. The April 20 low of $0.49, April 14 low of $0.46 could act as support levels for XRP.
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.