XRP Bulls to Target $0.55 as Investors Await the Hinman Documents

Key Insights:

• On Tuesday, XRP extended the winning streak to six sessions, gaining 5.48% to end the day at $0.52161.
• Investor optimism toward a Ripple victory in the ongoing SEC v Ripple case and network news delivered support.
• The price broke above a major trendline resistance held since April 2021.

On Tuesday, XRP rallied by 5.48%. Following a 2.47% gain from Monday, XRP ended the day at $0.52161. Significantly, XRP wrapped up the day at $0.52 for the first time since April.

XRP Price Action

Long term outlook:

On the long term chart we can see that XRP price is at a major resistance area squeezed between the weekly 200 Moving average sitting at $0.5010 and the downwards trendline that been formed since April 2021. The last three times that the price reached the trendline triggered a sell-off. A weekly candle close above the trendline and the 200MA would be a strong bullish sign.

Medium term outlook:

We can see that $0.482-$0.486 area been a major resistance area in the last 5 weeks. On Monday the price broke out above this area and above the long term trend line that we discussed about in the long term chart. The break out attracted a lot of buyers who pushed the price to 0.5293 on Tuesday. The next major resistance area on the medium term outlook is the $0.5357-$0.5463 area, approaching to this area with significantly overbought RSI led to a predictable price correction. The $0.482-$0.486 area that previously acted as a resistance should act a quite formidable area of support and providing an interesting dip buy opportunity.

Short term outlook:

On the 1Hour chart we can see that the price found support on the 50 Moving average. If the price will break below the 50 MA, it will be safe to assume that the $0.482-$0.486 area which now confluences with the long term down trendline will provide a strong support. In my opinion, the price action that we will see for the next few days we will be a sideways consolidation, preparing for a next leg up.

 

SEC v Ripple Case Optimism and Network News Delivered Support

It was a quiet Tuesday session, with no SEC v Ripple case-related news updates to provide direction. The lack of updates continued to leave XRP investors in an optimistic mood. On June 13, the SEC will release the William Hinman speech-related documents that could tilt the scales of justice in Ripple’s favor.

Network activity contributed to the upside. According to Santiment, the XRP network had its second and third-largest address activity spikes of all time over the last two days. Santiment shared the news, saying,

“A mild +4% decoupling has emerged between XRP & the altcoin pack, and if history repeats itself from the March 18^th activity spike, it could be more.”

The Day Ahead

It is a relatively busy Wednesday session. US economic indicators and Fed commentary will influence the afternoon. JOLTs Job Openings will draw interest as investors turn their attention to the US labor market ahead of Friday’s Jobs Report.

With rising bets on a June interest rate hike, FOMC member chatter will also need consideration. FOMC members Harker and Bowman will speak today.

However, US debt ceiling-related news will remain the focal point, with the markets expecting US lawmakers to vote on the deal today.

While the US economic calendar and updates from Washington will influence, SEC v Ripple case updates would have more impact.

Investors should also track SEC activity and Binance and Coinbase (COIN)-related news.