Ripple price loses bullish momentum as ruling on SEC case might be months away
- Ripple price has pulled back after attorney John Deaton put off hopes of a near ruling by Judge Torres.
- XRP could drop below the critical support at $0.507 before a deeper nosedive.
- A decisive close above the $0.531 resistance level will restore the bullish hope.
Ripple price (XRP) has investors jittered after the remittance token lost the bullish momentum seen in March. Three days into April, XRP has lost some of the gains made last month, with fingers pointed at US attorney John Deaton who hinted at an extended wait for a summary judgment by Judge Analisa Torres.
There is no deadline of today for her to rule. The decision could come out within the next hour or it could take another 30-60 days. Based on previous cases, Judge Torres has issued her ruling on summary judgment within a couple months of her Daubert/Experts’ decision.
— John E Deaton (@JohnEDeaton1) March 31, 2023
Nevertheless, Deaton remains pro-XRP and has likened the altcoin to a cockroach capable of surviving a nuclear bomb. He has also lauded Ripple price for holding above $0.510, saying it has the best risk/reward ratio.
Ripple price tests support at $0.507
At the time of writing, Ripple price is testing the critical support level at $0.507 a the bullish momentum displayed during the March rally fades. This comes after investors anticipated a summary judgment during late March or early April, but Ripple’s legal representative hinted at a prolonged wait.
If XRP bulls reduce their buying momentum, Ripple price could soon lose the immediate support at $0.507, opening the drains for further declines. The southbound move could see the remittance token retrace to the $0.477 support level, last tested on March 28.
In highly desperate cases, XRP traders hedging their holdings to avoid further losses could see Ripple price revisit the $0.443 support level. This would denote a 13% decline from the current price.
XRP/USDT 1-day chart
Conversely, if sidelined investors jump in at current levels, Ripple price could reclaim its bullish trajectory. An increase in buying pressure from the current price of $0.508 could see the altcoin break past the immediate psychological barricade around $0.517 to confront the next hurdle at $0.531. A decisive flip of this resistance into support would invalidate the bearish thesis.
In highly bullish cases, Ripple price could tag the $0.558 resistance level and continue its March uptrend. Such a move would constitute a 10% climb and would require that XRP display a ‘cockroach-like resilience’ to survive the prolonged wait and regulatory clampdown, among other narratives in the crypto market.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
