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Key Insights:
- On Tuesday, XRP extended the winning streak to four sessions, rising by 0.07% to end the day at $0.49316.
- However, SEC v Ripple Silence left XRP trailing the broader market.
- The technical indicators turned bullish, supporting a return to $0.52.
On Tuesday, XRP rose by 0.07%. Following a 1.24% gain on Monday, XRP ended the day at $0.49316. Despite the bullish session, XRP fell short of the $0.50 handle for the sixth consecutive session.
A mixed start to the day saw XRP rise to an early morning high of $0.49623. Falling short of the First Major Resistance Level (R1) at $0.5002, XRP fell to an early afternoon low of $0.47128. XRP fell through the First Major Support Level (S1) at $0.4832 before a late rebound to wrap up the day at $0.49316.
SEC v Ripple Silence Leaves Crypto Market Activity to Deliver Support
It was a quiet Tuesday, with US housing sector numbers having no impact on the crypto market after the Monday holidays. There were also no updates from the ongoing SEC v Ripple case to provide direction. The lack of Court updates left XRP on the back foot as investors grew cautious ahead of a Court ruling.
However, sentiment toward the launch of EDX Markets, news of Deutsche Bank (DB) going crypto, and optimism toward the SEC approving the Blackrock iShares Bitcoin Trust ETF delivered a late rebound.
The Day Ahead
It is a relatively quiet Wednesday session. Fed Chair Powell testimony will influence the afternoon. While hawkish commentary and the threat of a peak Fed Funds Rate above 5.6% would likely weigh on riskier assets, sentiment toward an influx of institutional money and an optimistic US economic outlook would cushion the downside.
While Fed Chair Powell will move the dial, SEC v Ripple Court activity will remain the key driver, with SEC v Binance and Coinbase (COIN) case-related news also needing consideration.
XRP Price Action
At the time of writing, XRP was up 0.72% to $0.49672. A mixed start to the day saw XRP fall to an early low of $0.48948 before rising to a high of $0.50012.
XRP Technical Indicators
The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
At the time of writing, XRP sat above the 100-day EMA, currently at $0.49537. The 50-day EMA crossed through the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.
A bullish cross of the 50-day EMA through the 100-day EMA would support a move through R1 ($0.5025) to target R2 ($0.5118). However, a fall through the EMAs would bring S1 ($0.4776) and sub-$0.47 Major Support Levels into view. A fall through the 50-day EMA ($0.49155) would send a bearish signal.
Resistance & Support Levels
XRP needs to avoid the $0.4869 pivot to target the First Major Resistance Level (R1) at $0.5025. A move through the morning high of $0.50012 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5118. The Third Major Resistance Level (R3) sits at $0.5368.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4776 into play. However, barring an SEC v Ripple-fueled sell-off, XRP should avoid sub-$0.4650 and the Second Major Support Level (S2) at $0.4619. The Third Major Support Level (S3) sits at $0.4370.
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