XRP Bears Eye Sub-$0.35 on SEC v Ripple Silence and Bank Woes

Key Insights:

• On Wednesday, XRP slid by 3.59% to end the day at $0.36038.
• A shift in focus from US regional banks to European banking giants sent XRP into the deep red.
• The technical indicators remain bearish, signaling a return to sub-$0.35.

On Wednesday, XRP slid by 3.59%. Reversing a 0.08% gain from Tuesday, XRP ended the day at $0.36038. Significantly, XRP returned to sub-$0.36 levels for the third time in four sessions.

A choppy start to the day saw XRP rise to an early morning high of $0.37738. Coming up short of the First Major Resistance Level (R1) at $0.3856, XRP slid to a late afternoon low of $0.35712. XRP fell through the First Major Support Level (S1) at $0.3644 to wrap up the day at $0.36038.

SEC v Ripple Radio Silence Leaves XRP in the Hands of Traditional Finance

It was another quiet day for XRP on Wednesday, with no SEC v Ripple case updates to provide XRP price direction. The lack of Court rulings left XRP in the hands of the US economic calendar and the banking sector.

Following the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY), contagion fears resurfaced on Wednesday. Credit Suisse Group AG (CSGN) slumped by 24.24% as investors responded to the bank’s largest shareholder stating it would not provide further financial assistance.

The European equity market saw deep red, with XRP and the broader crypto market struggling throughout the session. Late in the afternoon, the Swiss National Bank eased fears of another bank collapse, which delivered late price support.

US economic indicators failed to move the dial despite supporting a 25-basis point Fed interest rate hike. Wholesale inflationary pressures eased, with retail sales figures for February raising fears of a Fed-induced economic recession.

The Day Ahead

Updates from the ongoing SEC v Ripple case will remain the key driver. Investors await rulings relating to the Hinman Documents and Summary Judgment Reply Briefs, amongst others.

However, investors should continue monitoring the crypto news wires, with Binance and FTX news, regulatory activity, and lawmaker chatter focal points.

Economic indicators from the US would also need consideration, with initial jobless claims and Philly Fed Manufacturing Index numbers in focus. As bets of a 25-basis point Fed interest rate hike gather momentum, fears of a US hard landing could resurface.

XRP Price Action

At the time of writing, XRP was down 0.43% to $0.35883. A mixed start to the day saw XRP rise to an early high of $0.36157 before falling to a low of $0.35883.

Technical Indicators

XRP needs to move through the $0.3650 pivot to target the First Major Resistance Level (R1) at $0.3728 and the Wednesday high of $0.37738. A return to $0.37 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3852. The Third Major Resistance Level (R3) sits at $0.4055.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3525 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3447. The Third Major Support Level (S3) sits at $0.3244.

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 $0.37088. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The EMAs delivered bearish signals.

A move through the 50-day EMA ($0.37088) would support a breakout from R1 ($0.3728) and the 100-day EMA ($0.37404) to give the bulls a run at the 200-day EMA ($0.37867) and R2 ($0.3852). However, failure to move through the 50-day EMA ($0.37088) would leave S1 ($0.3525) in play.