Current trend

During the Asian session, the XRP/USD pair is holding at 0.4946, preparing to test the support line of the 0.5230–0.4510 channel.

Last week, reports emerged that Ripple Labs Inc. management is disputing the 2.0B dollars fine initiated by the US Securities and Exchange Commission (SEC) in a case of unregistered placement of securities after the sale of the XRP token. Now, the technology company's lawyers are demanding that the amount be adjusted to 10.0M dollars, citing as an example the settlement agreement between the agency and Terraform Labs, whose management the SEC previously accused of misleading investors by selling them securities under the guise of cryptocurrencies and promising high dividends. The defendants have announced their willingness to pay 3.58B dollars in compensation and 420.0M dollars in civil penalties. According to the rhetoric of Ripple Labs Inc. representatives, the penalty imposed on their company is equal to 1.27% of the gross sales volume of 33.0B dollars, while in other cases the financial authorities have limited themselves to penalties in the amount of 0.6% to 1.8%, and significantly exceeds the existing range, although there are no accusations of fraudulent actions and significant losses of clients recorded in the case.

If the corporation manages to challenge the sanctions, this will support the quotes of the third cryptocurrency by capitalization.

Support and resistance

The trading instrument is declining within the downwards channel with dynamic boundaries of 0.5230–0.4510, preparing to test the support line again. Technical indicators weaken the sell signal: the EMA oscillation range on the Alligator indicator is directed downwards, and the AO histogram forms correction bars in the negative zone.

Resistance levels: 0.5100, 0.5660.

Support levels: 0.4690, 0.4310.

Trading tips

Short positions may be opened after the price declines and consolidates below 0.4690, with the target at 0.4310 and stop loss 0.4800. Implementation period: 7 days or more.

Long positions may be opened after the price grows and consolidates above 0.5100, with the target at 0.5660 and stop loss 0.4900.