XRP Eyes Sub-$0.35 on US Banking Woes, USDC, and SEC v Ripple Silence

Key Insights:

• On Saturday, XRP bucked the broader market trend, falling by 1.24% to end the day at $0.36655.
• Silicon Valley Bank woes and the USD de-peg delivered a mixed XRP session, leaving investors to lock in profits.
• The technical indicators remained bearish, signaling a return to sub-$0.35.

On Saturday, XRP fell by 1.24%. Following a 0.02% loss on Friday, XRP ended the day at $0.36655. Significantly, XRP extended its losing streak to three sessions while avoiding sub-$0.36.

A bullish start to the day saw XRP rise to an early high of $0.37718 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3781, XRP fell to an early afternoon low of $0.36092. However, finding support at the First Major Support Level (S1) at $0.3608, XRP revisited the $0.367 handle before easing back.

SEC v Ripple Silence Leaves Silicon Valley Bank and USD Coin in Focus

It was another quiet session on Saturday. There were no SEC v Ripple case updates to distract investors from the new US banking crisis and the USD Coin (USDC) de-peg.

XRP had enjoyed a bullish first half of the week on investor hopes of a Ripple victory in the ongoing case between the SEC and Ripple. Recent Court rulings tilted the scales in favor of the Defendants, with the Hinman Documents another headache for the SEC.

As investors wait on rulings relating to the Hinman Documents and Summary Judgment Reply Briefs, US banking sector woes and contagion risks to the crypto market likely led investors to lock in gains from the week.

Updates on SVB Financial Group (SIVB) continue to test investor sentiment, with the USD Coin de-peg another bearish crypto event.

News of Reaper Financial converting USD Coin holdings into XRP failed to provide price support. However, the decision to convert to XRP over other crypto coins to ensure stability was material.

The Day Ahead

Silicon Valley Bank and the USD Coin de-peg remain the focal points for investors ahead of the Monday session. Contagion risks and the impact of another stablecoin collapse on investor confidence and regulatory scrutiny are considerations.

However, investors should continue monitoring Binance and FTX news, regulatory activity and lawmaker chatter, and SEC v Ripple case updates.

XRP Price Action

At the time of writing, XRP was up 0.14% to $0.36705. A mixed start to the day saw XRP rise to an early high of $0.36800 before falling to a low of $0.36534.

Technical Indicators

XRP needs to move through the $0.3682 pivot to target the First Major Resistance Level (R1) at $0.3755. A move through the Saturday high of $0.37718 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 an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3845 and resistance at $0.39. The Third Major Resistance Level (R3) sits at $0.4007.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3593 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.35. The Second Major Support Level (S2) at $0.3520 should limit the downside. The Third Major Support Level (S3) sits at $0.3357.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.37392. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.37392) would support a breakout from R1 ($0.3755) and the 100-day EMA ($0.37703) to bring the 200-day EMA ($0.38119) and R2 ($0.3845) into view. However, failure to move through the 50-day EMA ($0.37392) would leave S1 ($0.3593) in play.