XRP and a Return to $0.4250 in the Hands of Fed Chair Powell

Bob Mason
Published: Feb 1, 2023, 04:46 GMT+00:00

Following the bullish Tuesday session, XRP was under pressure this morning. A lack of SEC v Ripple news will leave Fed Chair Powell in the driving seat.

XRP Technical Analysis - FX Empire

Key Insights:

  • On Tuesday, XRP rallied by 3.12% to end the day at $0.40593.
  • Updates from the SEC v LBRY case and US economic indicators delivered price support.
  • The technical indicators turned bullish, with XRP sitting above the 100-day EMA, signaling a return to $0.45.

On Tuesday, XRP rallied by 3.12%. Partially reversing a 4.80% slide from Monday, XRP ended the month up by 19.90% to $0.40593. XRP revisited sub-$0.39 for only the second time in 11 sessions despite the bullish session.

A bearish start to the day saw XRP fall to a mid-morning low of $0.38812. Steering clear of the First Major Support Level (S1) at $0.3792, XRP rallied to a late high of $0.41122. Coming up short of the First Major Resistance Level (R1) at $0.4150, XRP eased back to end the day at $0.40593.

US Stats, the NASDAQ Index, and the LBRY Case Deliver Support

It was a busy Tuesday session. While there were no updates from the SEC v Ripple case to provide direction, news from the SEC v LBRY case drew plenty of interest.

Overnight Monday, news hit the wires of the SEC v LBRY judge denying an SEC attempt to block the sale of LBC tokens. CryptoLaw shared the latest SEC v LBRY updates, saying,

  1. The SEC lawyers in the case conceded OTR that secondary market sales of LBC tokens do not constitute a security.
  2. No one fights harder for the crypto community than John E Deaton. Imagine how easy the SEC would have it if it weren’t for him.

The news was good enough to raise hopes of a Ripple victory in its case against the SEC.

Away from the crypto news wires, US economic indicators and the NASDAQ Index supported a bullish session. Softer employment index and wage figures for Q4 eased bets of a hawkish Fed Chair Powell press conference, providing support to the NASDAQ Index and the broader crypto market.

Today, investors should monitor updates from the SEC v Ripple case. However, a lack of updates would leave the broader crypto market to provide direction. FTX and Genesis updates and regulatory chatter will also draw interest.

While US economic indicators will provide direction, the Fed interest rate decision and the Fed Chair Powell press conference will be the key driver. A hawkish Fed Chair would weigh on riskier assets.

XRP Price Action

At the time of writing, XRP was down 0.56% to $0.40365. A mixed start to the day saw XRP rise to an early high of $0.40617 before falling to a low of $0.40093.

XRP sees early red.
XRPUSD 010223 Daily Chart

Technical Indicators

XRP needs to avoid a fall through the $0.4018 pivot to target the First Major Resistance Level (R1) at $0.4154. A move through the Tuesday high of $0.41122 would signal a bullish session. However, the Fed Chair Powell and SEC v Ripple chatter would need to support a breakout.

In the case of an SEC v Ripple-fueled extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4249 and $0.43. The Third Major Resistance Level (R3) sits at $0.4480.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3923 into play. However, barring a Fed-fueled sell-off, XRP should avoid sub-$0.38 and the Second Major Support Level (S2) at $0.3787. The Third Major Support Level (S3) sits at $0.3556.

XRP resistance levels in play above the pivot.
XRPUSD 010223 Hourly Chart

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.40533. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

A move through the 50-day EMA ($0.40533) would support a breakout from R1 ($0.4154) to target R2 ($0.4249) and $0.43. However, a fall through the 100-day EMA ($0.39967) would give the bears a run at S1 ($0.3923) and the 200-day EMA ($0.38906). A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 010223 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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