XRP Bulls to Target $0.50 on Ripple Platform Updates and SEC v Ripple News

Key Insights:

• On Friday, XRP bucked the broader crypto market trend, rising by 2.81% to end the day at $0.48006.
• The Ripple quarterly update and optimism toward the outcome of the SEC v Ripple case delivered support.
• The technical indicators turned more bullish, signaling a return to $0.50.

On Friday, XRP rose by 2.81%. Following a 1.03% gain on Thursday, XRP ended the day at $0.48006. Significantly, XRP wrapped up the day at the $0.48 handle for the first time since April 19.

A mixed start to the day saw XRP fall to an early low of $0.46378 before making a move. Steering clear of the First Major Support Level (S1) at $0.4589, XRP rose to a mid-morning low of $0.48250. XRP broke through the First Major Resistance Level (R1) at $0.4723 and the Second Major Resistance Level (R2) at $0.4777 before a return to sub-$0.47.

However, a bullish afternoon saw XRP break back through R1 and R2 to end the day at $0.48006.

Ripple Quarterly Report and John Deaton Optimism Delivers $0.48

It was another quiet Friday session for investors monitoring the SEC v Ripple case, with no Court updates or filings to distract investors. Investors had hoped for Judge Torres to deliver her rulings before the weekend.

Despite the disappointment and the lengthy legal battle with the SEC, Ripple released the first quarter XRP Market Report. Salient points from the report included,

• Ripple sold $361.06 million in XRP in Q1 versus $226.31 million in Q4 2022.
• XRP Ledger on-chain activity was robust, with decentralized exchange volume increasing 34% to $115 million in Q1, quarter-on-quarter.
• Average Daily Volume on centralized exchanges surged 46% to $1 billion in Q1.
• Developers proposed a new interoperability standard (XLS-38d) for the XRP Ledger. XLS-38d would allow users to transfer digital assets and data between blockchains, regardless of underlying protocol or programming language.

The stats supported the trend-bucking Friday session.

Amicus Curiae attorney John Deaton was also in the spotlight on Friday. Deaton shared a Laura Shin interview with Law Professor JW Verret, saying,

“Great interview by Laura. JW Verret explains the Major Questions Doctrine. I’ve went on record to say I’m 100% convinced Ripple (and now, Coinbase) wins before the Supreme Court on this very issue and shuts down Gary Gensler’s unconstitutional expansion of Howey.”

On Wednesday, Coinbase (COIN) CEO 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.”

Recession jitters, Fed Fear, and Amazon.com (AMZN) weighed on the broader crypto market.

The Day Ahead

SEC v Ripple case updates will remain the focal point, with US regulatory activity and lawmaker chatter also needing consideration. However, Investors should monitor Binance and Coinbase-related news as Coinbase heads into a battle against the SEC.

While there are no US economic indicators or corporate earnings for investors to consider, the Amazon.com warning and recessionary fear will likely resonate.

However, the news of First Republic Bank (FRC) heading for receivership was XRP-positive, with the crypto market and Ripple remittance platform a viable alternative for depositors.

XRP Price Action

At the time of writing, XRP was down 0.36% to $0.47835. A mixed start to the day saw XRP rise to an early high of $0.48686 before falling to a low of $0.47835.

Technical Indicators

Resistance & Support Levels

XRP needs to avoid the $0.4754 pivot to target the First Major Resistance Level (R1) at $0.4871. A breakout from the morning high of $0.48686 would signal a bullish session. However, 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 $0.4942 and resistance at $0.50. The Third Major Resistance Level (R3) sits at $0.5129.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4684 into play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.46 and the Second Major Support Level (S2) at $0.4567. The Third Major Support Level (S3) sits at $0.4380.

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

At the time of writing, XRP sat below the 100-day EMA, currently at $0.48002. The 50-day EMA narrowed to the 200-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The EMAs delivered bullish signals.

A move through the 100-day EMA ($0.48002) would support a breakout from R1 ($0.4871) to target R2 ($0.4942) and $0.50. However, a fall through the 200-day EMA ($0.47738) would leave the 50-day EMA ($0.47188) and S1 ($0.4684) in view. A fall through the 50-day EMA would send a bearish signal.