The cryptocurrency is witnessing a bout of profit-taking as investors pulled gains. Just like the rest of the market, XRP is presently trading at $0.7621, down 3.82% on the day. In December 2020, the SEC filed its lawsuit against Ripple, arguing that the XRP is a security. At the start of this year, Attorney Jeremy Hogan offered April as his best estimate for its resolution, citing summer as a worst-case scenario. As it stands, this might see a delay by an extra month as U.S. Magistrate Judge Sarah Netburn has granted a motion to push the discovery deadline in the Ripple SEC case to Feb. 28. The expert discovery phase was then extended to Jan. 14 and Jan. 19 before the deadline was eventually pushed back to February. Last week, the SEC filed a letter of supplemental authority to strike Ripple’s fair notice defense, citing a recent ruling in another case. Ripple, however, argues SEC was misapplying a recent verdict.
Key Levels
Resistance Levels: $1.100, $0.9460, $0.8200
Support Levels: , $0.7500, $0.6950, $$0.5910
XRP/USD Daily ChartXRP/USD recently recorded a so-called death cross, meaning that the MA 50 crossed below the MA 200, which is a negative trend signal. That being said, the pair continues to trade quietly between $0.69 and $0.87 since the start of 2022, suggesting a neutral outlook, even if the broader one is negative. Near-term oscillators paint a mildly bearish picture, suggesting that the next move may be lower.
The RSI is below 50 already and looks to be inching lower. If the $0.69 level gives way, This might open the door for the $0.59 level. Should the bulls wrestle back control, initial resistance may come from the $0.86- $0.96 level which may be a tough area to crack as it also encompasses the MA 50 and 200. An upward violation would be a very encouraging sign for the bulls, allowing them to push towards the $1.07 level.
XRP/USD 4-Hour ChartXRP is taking a hit after reaching highs of $0.80 on Jan. 12 and is returning towards the MA 50. If the bears stay in the driver’s seat, the first obstacle that could halt downside extensions may be the MA 50 at $0.76 ahead of the $0.70. On the upside, there are several barriers, which the bulls need to clear to gain traders’ confidence.
If buyers successfully breach the $0.80, the MA 200 at $0.83 could block the way towards the $0.95 and slightly higher, the $1.01 level. To recap, as long as the XRP/USD pair is trapped between $0.69 and $0.87, the very short-term outlook is neutral, though slightly bearish.
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