XRP price is trading with a negative bias on Wednesday. The price opened higher but could not sustain the gains and test the low of $0.5017. XRP has been consolidating in a short-term price range of $0.5200-$0.5000 for the past few sessions.
XRP price had a good run in March with a price appreciation of nearly 43%. However, since the beginning of April investors have avoided aggressive bids in the assets.
The SEC and Ripple have been in conflict for over two years. In the latest development, the US Securities and Exchange Commission has issued a Letter of Supplemental Authority in its ongoing lawsuit against Ripple Labs. The news weighed negatively on the asset price.
As of press time, XRP/USD is exchanging hands at $0.5040, down 2.55% for the day. According to data analytic firm Coinmarketcap the 24-hour trading volume dropped to $1,138,956,901, down 2.52%.
Significantly, former federal prosecutor, James Filan, tweeted a post sharing the filling. The filing supported the SEC’s argument that Ripple was given fair notice, and addresses the defense of the cross-border payment giant.
Notably, a district of Massachusetts court delivered a statement of opinion on April 7 against Commonwealth Equity Services LLC and gave access to the SEC’s motion for summary judgment and denied a cross-motion.
On the daily time frame, the XRP price turns negative after consolidating in a short-term range. XRP bulls tested the high of $0.5848 on March 29, but could not sustain the gains further.
The daily RSI (14) trades below the average line. Currently, it reads at 57.
If the selling persists due to negative sentiment, XRP price could test the 21-day Exponential Moving Average (EMA). In the absence of any bullish hint the price could further test the 0.618% Fibo. retracement level at $0.4799.
On the flip side, a daily close above $0.5000 could invalidate the bearish theory.
