Ripple (XRP) prices are flat when writing, looking at the daily chart.
After a nearly 30% fall from 2023 peaks, prices are stagnant but remain above last week’s critical support at $0.42.
The uptrend remains from the candlestick arrangement in the past few months. Despite the contraction in May, the uptrend in March 2023 defines the current formation.
Accordingly, as long as prices are above $0.42, there is a chance for recovery, lifting the coin from spot rates. This preview is valid from an effort-versus-result perspective.
Notice that the swing to March 2023 high is with expanding volumes, more than what drove XRP prices to spot rates.
SEC lawsuit
The community is closely monitoring the ongoing court case.
With the United States Securities and Exchange Commission (SEC) adamant that XRP, the native currency of XRPL, is a security, the lawsuit is rapidly burning through Ripple’s resources.
Last week, Brad Garlinghouse, the CEO of Ripple, said they have spent roughly $200 million fighting the regulator.
In a fireside chat with Dan Murphy at the Dubai Fintech Summit, the CEO said:
“With the SEC, we will spend — this is the first time I’ve shared this publicly — by the time all’s said and done, we will have spent $200 million defending ourselves against a lawsuit, which from its very beginning, people were like, well, this doesn’t make a lot of sense.”
Ripple Price Analysis
The May 8 bar defines the current formation.
The upside remains as prices move horizontally, stable after a 27% crash from March peaks. XRP prices are at the 78.6% Fibonacci retracement level of the March trade range. This range has not been reversed, validating the upswing.
Therefore, traders can look for entries if there is a breakout above $0.45, marking May 8 bars. If volumes are rising, this may lift the coin towards $0.50 in a possible reversal. A breakout above $0.50 would start another leg up, possibly driving XRP to March highs.
Conversely, any dump below $0.42 cancels this preview. If volumes expand, XRP may slip to March 2023 lows in a retest.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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