XRP Set for a Choppy Session with Fed Chair Powell and the SEC in View

Key Insights:

• On Monday, XRP extended the winning streak to three sessions, rising by 1.24% to end the day at $0.49281.
• SEC v Ripple silence Left XRP in the hands of the broader market.
• However, the technical indicators remain bearish, leaving sub-$0.45 in view.

On Monday, XRP rose by 1.24%. Following a 1.45% gain on Sunday, XRP ended the day at $0.49281. Despite the bullish session, XRP fell short of the $0.50 handle for the fifth consecutive session.

A bearish start to the day saw XRP fall to a first-hour low of $0.48101. Steering clear of the First Major Support Level (S1) at $0.4750, XRP rose to a late afternoon high of $0.49802. However, coming up against the First Major Resistance Level (R1) at $0.4980, XRP eased back to end the day at $0.49281.

SEC v Ripple Silence Leaves XRP in the Hands of the Broader Market

It was a quiet Monday, with the US markets closed for Juneteenth Day. There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of Court updates left XRP in the hands of the broader crypto market.

Sentiment toward the Blackrock iShares Bitcoin Trust ETF and hopes of an influx of institutional money supported a bullish session. The upside came despite recessionary jitters resurfacing and hawkish Fed bets.

The Day Ahead

It is a relatively quiet Tuesday session. Fed Chair Powell testimony will influence the afternoon. Hawkish commentary and the threat of a peak Fed Funds Rate above 5.6% would likely weigh on riskier assets. FOMC members Bullard and Williams are also speaking today.

While Fed Chair Powell will move the dial, SEC and US lawmaker chatter will remain the focal point.

SEC v Ripple Court activity will be the key driver, with SEC v Binance and Coinbase (COIN) case-related news also needing consideration.

XRP Price Action

At the time of writing, XRP was down 0.11% to $0.49225. A mixed start to the day saw XRP rise to an early high of $0.49623 before falling to a low of $0.48943.

Technical Indicators

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.49256. 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 50-day ($0.49256) and 100-day ($0.49635) EMAs would support a move through R1 ($0.5002) to target ($0.5076). However, failure to move through the 50-day ($0.49256) would leave the 200-day EMA ($0.49131) and S1 ($0.4832) in view. A move through the 50-day EMA would send a bullish signal.

Resistance & Support Levels

XRP needs to avoid the $0.4906 pivot to target the First Major Resistance Level (R1) at $0.5002. A move through the Monday high of $0.49802 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5076. The Third Major Resistance Level (R3) sits at $0.5246.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4832 in play. However, barring an SEC v Ripple-fueled sell-off, XRP should avoid sub-$0.48 and the Second Major Support Level (S2) at $0.4736. The Third Major Support Level (S3) sits at $0.4566.