XRP price set to fall for the week as investors withdraw about $370 million in profits

Ripple’s XRP has recently experienced a price decline, falling to $0.62 on Friday. Nonetheless, the digital asset remained above the psychologically significant $0.60 level, demonstrating its resilience despite profit-taking activity by holders.

As the cryptocurrency market fluctuates, a critical deadline approaches in the ongoing SEC v. Ripple lawsuit, adding another layer of complexity to XRP’s trajectory.

Impending litigation deadlines and profit-generating activities

The SEC previously applied for a nine-day extension from March 13 to March 22, but any impending relief has not yet been determined as the SEC must file an opening brief.

Meanwhile, altcoins have witnessed an increase in on-chain activity, indicated by an increase in active addresses and whale transactions worth more than $100,000.

XRP holders earned approximately $370 million in profits over the past week through early March 2024. Santiment’s on-chain data shows consistent gains throughout March, with XRP rising to highs of $0.6685.

The altcoin’s ability to flip the $0.66 level from resistance to support could pave the way for a rebound toward the December 2023 high of $0.70.

Indicators such as Moving Average Convergence/Divergence (MACD) and Awesome Oscillator (AO) suggest potential support at $0.57 before a recovery phase.

An important factor in determining the near-term trajectory lies in the daily candlestick located just above the 78.6% Fibonacci retracement level of $0.62. This development could invalidate the support sweep thesis, opening the possibility for XRP to rally towards its December 2023 highs.

Simply put, technical analysis suggests that XRP could face a further downside, potentially testing the $0.57 level, representing the 50% Fibonacci retracement level to the 2024 high at $0.6685.