XRP Bears Eyes Sub-$0.45 on US Inflation and SEC v Ripple Sentiment

Key Insights:

• On Thursday, XRP tracked the broader crypto market, rising by 1.03% to end the day at $0.46695.
• US corporate earnings offset investor angst over the lack of Court rulings on the SEC v Ripple case.
• However, the technical indicators remain bearish, signaling a return to sub-$0.43.

On Thursday, XRP rose by 1.03%. Partially reversing a 1.61% loss from Wednesday, XRP ended the day at $0.46695. Despite the bullish session, XRP fell short of the $0.47 handle for the first time since March 26.

A bullish start to the day saw XRP rise to an early high of $0.46972 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.4857, XRP fell to a late morning low of $0.4563. However, steering clear of the First Major Support Level (S1) at $.0.4360, XRP bounced back to end the session at $0.46695.

US Corporate Earnings Deliver Support to Riskier Assets

On Thursday, XRP investors remained in ‘Wait and See’ mode, with no updates from the ongoing SEC v Ripple case to distract investors. While there were no SEC v Ripple case updates to consider, Coinbase (COIN) Brian Armstrong shared the Coinbase response to the Wells Letter, taking the fight to the SEC.

In a series of tweets, Armstrong had this to say,

“Coinbase is going to keep building the most trusted products and services to update the financial system and create more economic freedom in the world. We are committed to building in the US and around the world. We will defend ourselves and stand up for the rule of law.”

The SEC is targeting Coinbase, among other crypto platforms, despite SEC disagreements with the CFTC on whether cryptos are securities or commodities.

Ripple CEO Brad Garlinghouse shared Ripple’s Market Report on Twitter and shared his views on the US regulatory landscape, saying,

“The US may be moving backwards, but I like to focus on the positive – in the last few months, the EU, UK, and UAE all moved forward with new regulatory frameworks and regimes for crypto activities.”

While the crypto news wires drew interest, US corporate earnings supported the bullish Thursday session.

After better-than-expected earnings from Microsoft (MSFT), Alphabet Inc. (GOOGL), and Meta Platforms (META), Amazon.com (AMZN) supported the demand for riskier assets.

The Day Ahead

SEC v Ripple case updates will continue to be the focal point, with US regulatory activity and lawmaker chatter also likely to influence. Investors should monitor Binance and Coinbase (COIN)-related news.

However, silence from the Courts would give the US economic and earnings calendars more influence.

US inflation, personal spending, and income numbers will be in focus and influence the afternoon session.

Big names on the US earnings calendar include Exxon Mobil (XOM) and Chevron (CVX).

XRP Price Action

At the time of writing, XRP was down 0.16% to $0.46620. A mixed start to the day saw XRP rise to an early high of $0.46632 before falling to a low of $0.46378.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to avoid the $0.4643 pivot to target the First Major Resistance Level (R1) at $0.4723. A breakout from the Thursday high of $0.46972 would signal a bullish session. However, US economic indicators, earnings, and SEC v Ripple chatter must support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4777 and resistance at $0.48. The Third Major Resistance Level (R3) sits at $0.4912.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4589 into play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.45. The Second Major Support Level (S2) at $0.4509 should limit the downside. The Third Major Support Level (S3) sits at $0.4375.

The EMAs and the 4-hourly candlestick chart (below) sent bearish signals.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.47094. The 50-day EMA eased back from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA. The EMAs delivered bearish signals.

A move through the 50-day EMA ($0.47094) would support a breakout from R1 ($0.4723) to target the 200-day EMA ($0.47751) and R2 ($0.4777). However, failure to move through the 50-day EMA ($0.47094) would leave S1 ($0.4589) in view. A move through the 50-day EMA would send a bullish signal.