XRP and a Breakout from $0.50 in the Hands of the SEC v Ripple Case

Key Insights:

• On Sunday, XRP fell by 2.15% to end the session at $0.44925.
• A quiet Sunday session left investors on a cautious footing, with Court rulings from the SEC v Ripple case being imminent.
• The technical indicators are bearish, signaling a return to $0.43.

On Sunday, XRP fell by 2.15%. Following a 1.83% loss on Saturday, XRP ended the week down 4.75% to $0.44925. Significantly, XRP ended the session at sub-$0.45 for the first time since March 26.

A mixed start to the day saw XRP rise to an early morning high of $0.46067. Falling short of the First Major Resistance Level (R1) at $0.4684, XRP fell to a final-hour low of $0.44684. XRP fell through the First Major Support Level (S1) at $0.4509 to end the session at $0.4925.

SEC v Ripple Silence Left XRP on the Back Foot Again

There were no SEC v Ripple case updates to impact on Sunday. The lack of updates left investors in a cautious mood. After last week’s extended pullback, XRP may face further selling pressure as investors grow anxious about the outcome of the SEC v Ripple case.

Optimism has faded, leading to the XRP pullback from the March 29 high of $0.58479.

On Saturday, Ripple CEO Brad Garlinghouse may have spooked investors, saying.

“Great to meet so many folks from the XRP community at XRP Las Vegas 2023 – the camaraderie is remarkable (and an amazing feeling in person vs Twitter!). This community has stood by and supported Team Ripple as we have fought the good fight… I can’t adequately express my gratitude.”

It is unclear whether the Ripple CEO was aware of an imminent ruling. There was no crypto event to deliver the sixth bearish session of the week.

The Day Ahead

It could be a pivotal week for Ripple and the broader crypto market. The XRP Community awaits Court rulings from the SEC v Ripple case, which could materially alter the US regulatory landscape.

However, a lack of SEC v Ripple case updates will likely continue to test buyer appetite. Binance and Coinbase (COIN)-related news and the SEC will also influence, with XRP showing increased sensitivity to lawmakers and regulatory activity.

This afternoon, there are no US economic indicators to influence. The lack of stats will leave Fed chatter to provide direction.

XRP Price Action

At the time of writing, XRP was up 0.15% to $0.44992. A mixed start to the day saw XRP fall to an early low of $0.44738 before rising to a high of $0.45148.

Technical Indicators

Resistance & Support Levels

XRP needs to move through the $0.4523 pivot to target the First Major Resistance Level (R1) at $0.4577 and the Sunday high of $0.46067. A return to $0.4550 would signal a bullish 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 $0.4661 and resistance at $0.47. The Third Major Resistance Level (R3) sits at $0.4799.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4438 in play. However, barring a crypto event-fueled sell-off, XRP should avoid sub-$0.4350. The Second Major Support Level (S2) at $0.4384 should limit the downside. The Third Major Support Level (S3) sits at $0.4246.

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 $0.46197. The 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA. The EMAs delivered bearish signals.

A move through R1 ($0.4577) and the 50-day EMA ($0.46197) would give the bulls a run at R2 ($0.4661) and the 100-day ($0.46820) and 200-day ($0.47136) EMAs. However, failure to move through R1 ($0.4577) and the 50-day EMA ($0.46197) would leave S1 ($0.4438) in view. A move through the 50-day EMA would send a bullish signal.