XRP Bulls to Target $0.4950 or Face a Pullback to Sub-$0.4750

Key Insights:

• On Sunday, XRP gained 2.30% to end the week at $0.4845.
• SEC v Ripple case-related news took a back seat, with false rumors of Gary Gensler resigning delivering a breakout start to the day.
• The technical indicators turned bullish, signaling a return to $0.50.

On Sunday, XRP rose by 2.30%. Following a 0.13% gain on Saturday, XRP ended the week down 1.18% to $0.4845.

A bearish start to the day saw XRP fall to a first-hour low of $0.4701. Steering clear of the First Major Support Level (S1) at $0.4669, XRP surged to an early morning high of $0.4962. XRP broke through the Major Resistance Levels before pulling back through R3 ($0.4936) to end the day at $0.4845.

False Rumors Send XRP to Test Resistance at $0.50

It was a quiet Sunday session, with no Court rulings from the ongoing SEC v Ripple case to draw interest.

While there were no updates to consider, false rumors of SEC Chair Gary Gensler did the rounds. Several platforms, including Documenting Ripple, reported internal sources at the SEC confirming Gary Gensler will resign.

There was also chatter within the XRP community about the US election year and the chances of a Gensler resignation.

John Deaton responded to news of SEC PR announcing that Gary Gensler is not resigning, saying,

“Not yet. But we are entering the election year season, and the more of a political liability Gary Gensler becomes, the greater the chance it does happen.”

The Day Ahead

It is a busy Monday session, with economic indicators from the euro area and the US in focus ahead of the Fourth of July holidays. While the PMIs will influence market risk appetite, the crypto news wires will continue to influence.

The SEC v Ripple case will remain the focal point. However, investors should monitor SEC and US lawmaker chatter. SEC v Binance and Coinbase (COIN)-related news would also move the dial.

XRP Price Action

At the time of writing, XRP was down 0.27% to $0.4832. A mixed start to the day saw XRP rise to an early high of $0.4867 before falling to a low of $0.4813.

Technical Indicators

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.4801. The 50-day EMA narrowed to the 200-day EMA, supporting a bullish near-term trend. However, XRP needs to move through the 200-day EMA ($0.4868) to target the current resistance band of $0.4925 – $0.5000.

A move through the 200-day EMA would also support a breakout from R1 ($0.4971) to target R2 ($0.5097).

However, a fall through the 50-day EMA ($0.4801) would bring S1 ($0.4710) into view.

Looking at the 14-4H RSI, the 54.12 reading signals a moderately bullish trend, aligned with the 50-day EMA. The 14-4H RSI supports a move through the 200-day EMA ($0.4868) to target the upper resistance band of $0.5000.

Resistance & Support Levels