After hitting yearly highs near $2, the next indication of price movement on XRP/USD may emerge from the battle between Ripple and the US Securities and Exchange Commission.
- XRP/USD pair bounced off support level at $1.4085 during the prior day
- XRP recovered its footing as bulls tend to reinforce
- United States SEC places indirect “regulatory pressure” on Ripple and partners
After the recent declines XRP price bounced off support level at $1.4085 during the prior day and the rest of the big hitters may come in the subsequent sessions. At the moment XRP/USD is heading marginally north after the slip to the $1.4085 support level, however, the pullback near the $2 horizontal barrier in the prior session signals a mild negative momentum in the broader outlook.
From the technical view, XRP recovered its footing as bulls tend to reinforce the price action which is suggesting a flattening movement as it stands slightly below two days bearish candles. Additionally, the RSI is pointing down from overbought territory. Overall the daily charts are showing a neutral-to-bullish bias in the medium-term. At the time of writing, XRP is trading with moderate losses in the 24-hour chart.
US Security and Exchange Commission Extended Lawsuit Improper
The SEC’s case against Ripple Labs and its executives Brad Garlinghouse and Chris Larsen seems to have taken an unexpected turn. According to James Filan, a former federal prosecutor and defense lawyer, the Commission may have allegedly circumvented those laws in its favor. The SEC is reportedly “pursuing discovery” on Ripple from the Financial Conduct Authority of the United Kingdom (FCA).
According to a document filed with the Southern District of New York and Magistrate Judge Sarah Netburn, this form is known as Memoranda of Understanding (“MOU”) and violates The Hague Convention. The defense characterizes the procedure as “improper” and part of an “intimidation technique” aimed at limiting Ripple’s ability to conduct business outside the United States.
XRP Daily Chart: Ranging
All things being equal, the XRP/USD price is likely to continue to edge higher during the present trading session and the next. The possible target for bullish traders will be near the $1.90 level. However, a resistance cluster at $1.85 could still provide a barrier for buyers during the following trading session. On the contrary, Further losses could take the bears towards the immediate trough created on Apr. 11 at $1.30 before tumbling to the low of $1.46 former cluster zone.
If selling interest intensifies, traders could have an eye for the $0.845 barrier, being low from April 6. In the positive scenario, sustained advances above the prior day’s rebound zone of $1.4085 could hit the $2.00 hurdle and lower surface of the daily cloud. Above that, the levels between $2.20 and $2.40 could halt bullish movements, before re-testing the retracement level at $1.85 again. More gains could lead to the price until the powerful horizontal line currently at $2.00 is breached.
XRP 4-Hour Chart: Ranging
Having retraced nearly 30% of Tuesday rally, XRP price rose modestly from recent lows, as bulls consolidate recent gains. The technical studies show XRP may see massive swings in sessions to come on increased volumes but clearly will be impacted by the battle between Ripple and the US SEC giving no clear directional signal to the markets. The lower time frame moving average (MA 50) so far held its ground in the initial correction.
XRP/USD has psychological support intact at $1.30, with resistance at $1.85. We expect the price of the token to continue consolidating around these levels over the next 24 hours, as markets await directional moves elsewhere. Overall, XRP will find plenty of willing buyers on material dips, particularly as the XRP community stands against US SEC’s “Shady” move. In the interim, the $2.0 resistance level is seen as a likely bullish target for the XRP/USD pair.
Resistance Levels: $2.20, $2.00, $1.85
Support Levels: $1.40, $1.30, $1.14
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