XRP in Need of a Favorable Court Ruling or Face Sub-$0.48

Key Insights:

• On Monday, XRP joined the broader crypto market in the red, sliding by 4.34% to end the day at $0.49618.
• Investor impatience over the SEC v Ripple case and economic indicators weighed.
• The technical indicators are mixed, signaling an uncertain Tuesday session.

On Monday, XRP slid by 4.34%. Reversing a 1.76% gain from Sunday, XRP ended the day at $0.49618. XRP ended the day at sub-$0.50 for the first time in seven sessions.

A mixed start to the day saw XRP rise to an early morning high of $0.52435 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.5312, XRP fell to a late low of $0.48227. XRP fell through the First Major Support Level (S1) at $0.5041 and briefly through the Second Major Support Level (S2) at $0.4895 before wrapping up the day at $0.49618.

Investor Patience Runs Thin on Court Silence

It was another quiet session on Monday, with no SEC v Ripple case updates to provide direction.

The lack of news left XRP in the hands of US economic indicators and heightened regulatory and lawmaker scrutiny.

Manufacturing sector PMI numbers from China sent XRP into an early reversal, with the US ISM Manufacturing PMI also weighing.

The all-important Chine Caixin Manufacturing PMI fell from 51.6 to 50.0. Weak overseas demand weighed on production and the headline PMI. Things were no better in the US, with the ISM Manufacturing PMI falling from 47.7 to 46.3.

Hopes of court rulings and a Ripple victory in the SEC v Ripple case faded, leaving investors in limbo. The lack of court rulings and increased scrutiny of the digital asset space contributed to the Monday pullback.

The Day Ahead

Investors should track the crypto news wires and Twitter for updates from the SEC v Ripple case. A lack of updates will leave the spotlight on Binance and Coinbase (COIN). US regulatory activity and lawmaker chatter will also move the dial.

US JOLTs job openings will likely influence the afternoon session.

XRP Price Action

At the time of writing, XRP was down 1.32% to $0.48964. A mixed start to the day saw XRP rise to an early high of $0.49796 before falling to a low of $0.48946.

Technical Indicators

XRP needs to move through the $0.5009 pivot to target the First Major Resistance Level (R1) at $0.5196 and the Monday high of $0.52435. A return to $0.50 would signal a bullish session. However, 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 $0.5430 and resistance at $0.55. The Third Major Resistance Level (R3) sits at $0.5851.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4775 in play. However, barring another extended sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4589. The Third Major Support Level (S3) sits at $0.4168.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.47607. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The EMAs delivered mixed signals.

A move through the 50-day EMA ($0.50369) would support a breakout from R1 ($0.5196) to target R2 ($0.5430) and $0.55. However, a fall through S1 ($0.4775) and the 100-day EMA ($0.47607) would give the bears a run at S2 ($0.4589). A move through the 50-day EMA would send a bullish signal.