XRP Bulls in the Need of an SEC v Ripple Catalyst to Avoid Sub-$0.45

Key Insights:

• On Saturday, XRP bucked the broader market trend, gaining 0.41% to end the day at $0.4705.
• There were no SEC v Ripple case-related updates to move the dial, leaving the crypto news wires to provide direction.
• However, the technical indicators remained bearish, signaling a return to sub-$0.45.

On Saturday, XRP rose by 0.41%. Following a 1.30% gain on Friday, XRP ended the day at $0.4705. Significantly, XRP held onto the $0.47 handle for the first time in three sessions.

XRP Price Action

At the time of writing, XRP was up 0.02% to $0.4706. A range-bound start to the day saw XRP fall to an early low of $0.4696 before rising to a high of $0.4719.

Daily Chart

The Daily Chart showed XRP/USD sitting below the 50-day EMA ($0.4826) while holding above the 200-day EMA ($0.4572). Despite the bullish Saturday session, XRP/USD tested the upper level of the $0.4675 – $0.4615 support band on Saturday before finding support.

Notably, the 50-day EMA narrowed to the 200-day EMA and reflected bearish momentum over the near term.

Looking at the 14-Daily RSI, the 44.02 reading signaled a bearish trend, aligned with the 50-day EMA and supporting a fall through the $0.4675 – $0.4615 support band to test the 200-day EMA ($0.4573).

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at the $0.4750 psychological level. XRP/USD sits below 50-day ($0.4751) and the 200-day ($0.4835) EMAs. Significantly, the 50-day EMA pulled back from the 200-day EMA, signaling a fall through the $0.4675 – $0.4615 support band to test buyer appetite at $0.46.

XRP/USD must hold above the upper level of the $0.4675 – $0.4615 support band to support a run at the 50-day EMA and 200-day EMAs. An XRP move through the 50-day EMA ($0.4751) would support a breakout from the 200-day EMA to bring the $0.4925 – $0.5000 resistance band into view.

The 14-4H RSI reading of 48.10 indicates a bearish stance and aligns with the EMAs, with selling pressure outweighing buying pressure. Significantly, the RSI signals near-term bearish momentum and a look at sub- $0.46.

Ripple Chatter Supported a Trend-Bucking Start to the Weekend

It was a quiet Saturday session. There were no Court rulings from the ongoing SEC v Ripple case to move the dial. The lack of Court rulings left XPP in the hands of the crypto news wires. A Bank of America (BAC) report did the rounds on Saturday, providing a rosier outlook for Ripple and XRP.

Ripple was a focal point in one section of the Breaking New Ground – Harnessing Payment Innovation in APAC – report relating to the impact of real-time activity and blockchain in the APAC region, stating,

“It has played an important role in helping to digitize trade documentation, as the technical basis of the smart contract, but in cross-border payments, the work of Ripple is a possible exception, its impact has been limited.”

The report insinuates that Ripple is an exception to the rule regarding the failures in delivering cross-border payments alternatives. The Bank of America report provided another favorable account of the Ripple cross-border payment products.

On Friday, news of Ripple entering the tokenized real estate space was also XRP positive, with the Ripple platform continuing to grow despite the SEC v Ripple case.

Central Bank Digital Currencies have gained traction this year. Ripple is actively exploring CBDCs and use cases of CBDCs and stablecoins in the real world. Ripple CBDC advisor Antony Welfare had this to say,

“CBDCs are gaining traction globally, and Ripple CBDC team are focusing in on real-world use cases for a CBDC or stablecoin.”

Welfare offered two real-use cases related to real estate tokenization, including allowing users to tokenize real estate as collateral for loans.

The Day Ahead

It is a quiet Sunday session, with no US economic indicators to influence. The lack of US economic indicators will continue to leave XRP in the hands of the crypto news wires.

A shift in sentiment toward the SEC v Ripple case would move the dial. Optimism has waned since the SEC released the William Hinman speech-related documents.

While the SEC v Ripple case will remain the focal point, investors should monitor SEC and US lawmaker chatter. Binance, SEC v Binance and Coinbase (COIN)-related news also needs consideration.