Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists, now in the form of crossed motions to determine which materials and testimonies have to be included in the case.
The SEC filed on Monday its response to Ripple’s motion to strike new expert materials, which requested the court to dismiss testimony from SEC accountant Andrea Fox. The US regulator had shared new materials in its previous filings. Ripple labeled these materials as the testimony of the expert. The two parties are now arguing over the status of the SEC accountant Andrea Fox’s statements. Whether Fox’s statements will be considered as a summary or an expert testimony, the decision lies with the court.
The lawsuit’s focus has shifted from XRP sales made to institutional investors to the nature of one Andrea Fox’s comments. XRP holders have their eyes peeled for the next update, in May 2024, when the court rules on the lawsuit.
Ripple sustained above $0.51 as the SEC filed its response to the firm’s motion. The $0.53 level is the closest resistance for Ripple. While Ripple has broadly consolidated in the last few days, overcoming this level would be key to start an uptrend as it has acted as support throughout mid-February, March and early April.
The Relative Strength Index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, currently reads 41.43, up from the 39.65 observed on Sunday. The RSI, which is slowly climbing towards the neutral level at 50, is in agreement with price and no divergence is observed.
The Moving Average Convergence/Divergence (MACD) indicator shows green histogram bars above the neutral line and a recent crossover of the indicator above the signal line was noted on April 22, a bullish sign for XRP.
If XRP continues climbing higher, key resistances are at $0.53, $0.55 and $0.64, which align with the 50%, 61.8% and 100% Fibonacci retracement levels of the decline between April 9 top of $0.64 to April 13 low of $0.42.
XRP/USDT 1-day chart
A daily candlestick close below $0.50, a support level where XRP has hovered for the past four days, could invalidate the bullish thesis. In a correction, XRP could find support at the April 19 low of $0.46 and the April 13 low of $0.42.