Ripple (XRP) managed to hold above the crucial $0.50 support level on Wednesday, despite facing a downward trend that has wiped out all gains since February. While the altcoin experiences a 6% decline over the past ten days, recent developments offer a mix of bearish and bullish signals.
SEC Response Awaits, XRP Ledger Enters Japanese Market
Ripple holders are currently evaluating the SEC’s response to the motion to strike expert testimony, a key element in the ongoing legal battle between the regulator and Ripple.
Meanwhile, a brighter spot emerged with Ripple’s partnership announcement with HashKey DX, a Tokyo-based consulting firm. This collaboration aims to introduce XRP Ledger powered enterprise solutions to the Japanese market, leveraging the extensive network of the HashKey Group.
Technical Analysis Paints a Bearish Picture
Despite clinging to $0.50 support, XRP’s technical indicators suggest a confirmed downtrend. Lower highs and lower lows since March paint a concerning picture, with the Relative Strength Index (RSI) nearing the oversold zone.
The Moving Average Convergence Divergence (MACD) reinforces the bearish trend, showcasing red histogram bars across various timeframes. While a daily close above $0.50 could potentially invalidate this bearish thesis, XRP faces immediate resistance at $0.5314.
Key Support and Resistance Levels
$0.4665, the April 19th low, serves as the next support level if the current support crumbles. Conversely, a daily close above $0.50 could signal a potential trend reversal, with $0.5314 acting as the first hurdle. This level coincides with the 50% Fibonacci retracement of the recent decline.
Also Read: XRP Price Prediction: Can the New Lending Protocol Drive a $20 XRP in the Next Bull Run?
XRP finds itself at a critical juncture. While the technical analysis leans heavily towards a bearish trend, the recent partnership in Japan injects a dose of optimism. Investors are closely monitoring both the SEC’s response and XRP’s price action to determine the altcoin’s future trajectory.
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