Ripple, the payment company, is gearing up to present a counterargument against the SEC’s demand for a $2 billion penalty. This development has captured attention, especially as XRP has surpassed the $0.50 mark it struggled with last week. The market is eagerly awaiting Ripple’s response to the SEC’s penalty claim.
Ripple to Respond to SEC
On Monday, XRP’s price climbed to $0.54 just before Ripple presented its counterargument to the SEC. This increase reflects the anticipation of how Ripple will defend itself against the regulator’s accusations. The allegations made by the SEC and the potential penalty amount are of utmost importance.
XRP holders are closely monitoring the legal battle between Ripple and the SEC as it can directly impact the price of XRP. The counterargument presented by Ripple will shape market players’ expectations for the future.
Ripple CEO Brad Garlinghouse recently expressed optimism about the company’s expansion plans and the utility of XRP in an interview. However, uncertainties about how the SEC case will affect the company’s future still persist.
XRP Prepares to Test $0.60 Resistance Level
After a week of consolidation, XRP has successfully surpassed the $0.50 resistance level. This altcoin has gained 25% in value since April 13, recovering from its lowest point of $0.4188. The next significant resistance levels to watch out for are $0.60 and $0.6431, both of which have psychological significance and were observed on April 9.
The Fisher Transformation Indicator confirms the reversal in the uptrend for XRP. This technical indicator helps identify periods of excessive price volatility and turning points in asset prices. The move above the transformation signal line suggests a potential reversal in the uptrend, making it a favorable time for buyers to purchase XRP.
When Will the Bullish Thesis Be Invalidated?
The Average Direction Index (ADX), commonly used to assess the strength and direction of a trend, is currently at 25.76. An ADX above 25 indicates a strong trend. Both indicators support the recovery in XRP prices and the thesis of a bullish trend reversal.
However, if the daily candlestick closes below the $0.50 level, it could invalidate the bullish thesis. In such a scenario, XRP may find support at its lowest point of $0.4188 from April 13 or at a significant support level of $0.4117 on the weekly price chart, which has shown strength since March 2023.
Disclaimer: The information in this article should not be taken as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
