XRP Bulls to Target $0.50 on SEC v Ripple Court Rulings

Key Insights:

• On Sunday, XRP fell by 1.60% to end a bearish week at $0.46477.
• Fed Fear and regulatory risk overshadowed lingering hopes of a Ripple win in the ongoing SEC v Ripple case.
• The technical indicators are bearish, signaling a return to sub-$0.42.

On Sunday, XRP fell by 1.60%. Partially reversing a 5.10% gain from Saturday, XRP ended the week down by 10.83% to $0.46477. Significantly, XRP ended the day at sub-$0.47 for the second time since March 26.

After a choppy start to the day, XRP rose to a mid-morning high of $0.47201 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.4833, XRP fell to a late afternoon low of $0.45349. Finding support at the First Major Support Level (S1) at $0.4536, XRP bounced back to end the day at $0.46477.

Regulatory Uncertainty and Fed Fear Weigh

It was a quiet weekend, with no SEC v Ripple case updates to influence investor sentiment. The lack of stats left investors to consider the diverging crypto regulatory landscapes of the US and Europe.

An anti-crypto US administration fueling the SEC’s regulation by enforcement mantra remains XRP price negative. Fear of a more hawkish Fed added to the bearish mood. US private sector PMIs from Friday continued to resonate, with investors now considering a Fed rate hike in June and the possible impact on the US and global economies.

However, while the US crypto landscape remains a headwind, a Ripple victory in the SEC v Ripple case could shift crypto sentiment on Capitol Hill in favor of the crypto market. Optimism toward a Ripple victory lingers, with legal experts predicting Court rulings this week.

The Hinman documents and references to Judge commentary from other crypto-related cases have placed the Ripple Defense team on a firmer footing. Failure by the SEC to secure the Hinman documents from the public eye could force the SEC into settlement and end the SEC’s era of regulation by enforcement.

The Day Ahead

Investors should track the crypto news wires for updates from the ongoing SEC v Ripple case. Binance and Coinbase (COIN)-related news will also provide direction.

Barring SEC v Ripple case updates, US regulatory activity and lawmaker chatter will remain the focal points.

XRP Price Action

At the time of writing, XRP was up 3.17% to $0.47948. A bullish start to the day saw XRP rise from an early low of $0.46282 to a high of $0.48058. XRP broke through the First Major Resistance Level (R1) at $0.47340.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to avoid a fall through R1 and the $0.4634 pivot to target the Second Major Resistance Level (R2) at $0.4819 and $0.4850. A move through the morning high of $0.48058 would signal a breakout session. However, SEC v Ripple chatter must support a breakout.

In the case of an extended rally, XRP would likely test the Third Major Resistance Level (R3) at $0.5005.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.4548 into play. However, barring another extended sell-off, XRP should avoid sub-$0.45 and the Second Major Support Level (S2) at $0.4449. The Third Major Support Level (S3) sits at $0.4264.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.48164. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bearish signals.

A move through the 200-day ($0.48164) and R2 ($0.48190) would give the bulls a run at the 50-day EMA ($0.48421) and the 100-day EMA ($0.49184). However, failure to move through the 200-day EMA ($0.48164) would leave S1 ($0.4548) in view. A move through the 50-day EMA would send a bullish signal.