XRP Eyes a Return to $0.40 to Target $0.42 on SEC v Ripple Sentiment

Key Insights:

• On Monday, XRP rallied by 3.17% to end the day at $0.39832.
• US regulator and lawmaker silence provided respite following last week’s regulatory scrutiny.
• The technical indicators turned bullish, signaling a return to $0.42.

On Monday, XRP rallied by 3.17%. Reversing a 2.12% fall from Sunday, XRP ended the day at $0.39832. The bullish session supported an XRP return to $0.40 for the first time in four sessions.

A bearish start to the day saw XRP slide to an early morning low of $0.3775 before making a move. XRP briefly fell through the First Major Support Level (S1) at $0.3817 to test the Second Major Support Level (S2) at $0.3772.

However, finding crypto market support, XRP surged to an early afternoon high of $0.40861. XRP broke through the First Major Resistance Level (R1) at $0.3941 and briefly through the Second Major Resistance Level (R2) at $0.4020 before easing back to end the day at $0.39832.

Ripple Expansion News Delivers Bullish Session on US Holiday

It was a quiet Monday session, with the US markets closed for George Washington’s birthday. The Monday US holiday left the crypto market free of regulatory activity and US lawmaker chatter, supporting a broad-based crypto rally.

With no SEC v Ripple updates for investors to consider, Ripple news delivered price support.

This week, Mathew Punnoose took to LinkedIn, saying,

“It was a pleasure to meet Mark Johnson, William Cooley, and Nick Taplin of Ripple, the market leader in enterprise blockchain and crypto solutions. It was a great discussion on how Ripple could be a great enabler for money transfer entities to scale up for affordable cross-border payments, instant settlement, and continuous liquidity access with their On-Demand Liquidity using the XRP platform. We are excited to collaborate with you.”

Mathew Punnoose is the Managing Director of Joyalukkas Exchange, based in Dubai. The latest post reflects the success of Ripple’s ongoing expansion plans, with Dubai a crypto-friendly jurisdiction.

The Ripple news and lack of regulatory activity supported the bullish session and a return to $0.40.

The Day Ahead

Investors should continue to monitor the news wires for Binance, FTX, Genesis, and Silvergate Bank news and chatter relating to the SEC v Ripple case.

However, we expect SEC activity and US lawmaker chatter to remain the key driver, barring a ruling from the Courts on the SEC v Ripple case.

XRP Price Action

At the time of writing, XRP was down 0.28% to $0.39722. A mixed start to the day saw XRP fall to an early low of $0.39601 before rising to a high of $0.39870.

Technical Indicators

XRP needs to avoid the $0.3948 pivot to target the First Major Resistance Level (R1) at $0.4121. A move through the Monday high of $0.40861 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4259. The Third Major Resistance Level (R3) sits at $0.4570.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3810 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.38 and the Second Major Support Level (S2) at $0.3637. The Third Major Support Level (S3) sits at $0.3326.

The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.39198. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were bullish.

A bullish cross of the 50-day EMA through the 100-day would support a breakout from R1 ($0.4121) to bring R2 ($0.4259) into play. However, a fall through the EMAs would give the bears a run at S1 ($0.3810). A fall through the 50-day EMA would send a bearish signal.