Ripple’s XRP has experienced a recent price dip, sliding to $0.62 on Friday. Despite this, the digital asset has managed to hold above the psychologically significant $0.60 level, demonstrating resilience in the face of profit-taking activities by holders.
As the cryptocurrency market fluctuates, a critical deadline looms in the ongoing SEC v. Ripple lawsuit, adding another layer of complexity to XRP’s trajectory.
Impending Lawsuit Deadline & Profit-taking activity
The SEC had previously filed for a nine-day extension from March 13 to March 22, with impending remedies yet to be decided as the SEC needs to file its opening brief.
Meanwhile, the altcoin has witnessed heightened on-chain activity, marked by an increase in Active Addresses and Whale transactions valued at $100,000 and higher.
XRP holders have seized an estimated $370 million in profits within the past week, spanning the beginning of March 2024. On-chain data from Santiment reveals a consistent profit throughout March, coinciding with XRP’s ascent to a peak of $0.6685.
The altcoin’s ability to flip the $0.66 level from resistance to support could pave the way for a rally towards its December 2023 peak of $0.70.
Indicators such as the Moving Average Convergence/Divergence (MACD) and the Awesome Oscillator (AO) hint at a potential sweep of support at $0.57 before a recovery phase.
A critical determinant for the short-term trajectory lies in a daily candlestick close above the 78.6% Fibonacci retracement level at $0.62. Such a development could invalidate the thesis of a support sweep, opening the possibility for XRP to rally toward its December 2023 high.
In short, technical analysis suggests that XRP may encounter further downside, potentially testing the $0.57 level, representing the 50% Fibonacci retracement level of the rally to its 2024 high of $0.6685.
