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XRP Bears to Target Sub-$0.45 on Anti-Crypto Rhetoric

By:
Bob Mason
Published: May 22, 2023, 01:15 GMT+00:00

XRP was in the red this morning as investors responded to President Biden's references to cryptos. US debt ceiling news and Fed chatter will influence today.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Sunday, XRP ended the seven-session winning streak, falling by 2.49% to end the day at $0.45700.
  • US President Joe Biden and US debt ceiling jitters overshadowed optimism toward the SEC v Ripple case.
  • However, the technical indicators remained bullish, signaling a return to $0.50.

On Sunday, XRP fell by 2.49%. Reversing a 0.23% gain from Saturday, XRP ended the week up 7.47% to $0.45700. Significantly, XRP ended the seven-session winning streak.

A bullish start to the day saw XRP rise to a mid-morning high of $0.47048 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.4728, XRP slid to a late afternoon low of $0.45544. XRP fell through the First Major Support Level (S1) at $0.4634 and the Second Major Support Level (S2) at $0.4582 to end the day at $0.45700.

US President Biden and Debt Ceiling Woes Weighed

It was a quiet Sunday, with no updates from the ongoing SEC v Ripple case to influence. The lack of updates left XRP in the hands of SEC v Ripple case-related chatter and US debt ceiling-related news.

Ripple Chief Legal Office Stuart Alderoty had this to say about the SEC and securities,

“The Sup Ct’s Andy Warhol lithograph case got attention last week. Did you know that in 1976 the SEC said that art lithographs – even when sold for investment – are not securities when there are no post-sale contractual obligations from the seller in favor of the buyer?”

Amicus Curiae attorney John Deaton was also active on Twitter, referencing the Hinman documents, among other parts of the SEC v Ripple case.

However, US President Joe Biden and the US debt ceiling crisis overshadowed optimism toward the SEC v Ripple case. Attending the G7 in Japan, the US President gave an update on the US debt ceiling crisis, saying,

“I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistants at risk.”

The anti-crypto rhetoric, and the ongoing threat of a US default, sent the crypto market into the red.

The Day Ahead

It is a busy Monday session for XRP and the broader crypto market. While there are no US economic indicators to influence, Fed speeches and US debt ceiling-related news will be focal points. President Joe Biden and Speaker of the House Kevin McCarthy will resume talks today. Progress toward a deal would deliver XRP price support.

Following less hawkish Fed Chair Powell chatter on Friday, FOMC members would need to toe the line to deliver price support. FOMC members Bullard, Bostic, and Barkin will speak today.

However, investors should continue to track SEC v Ripple updates and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was down 0.91% to $0.45286. A mixed start to the day saw XRP rise to an early high of $0.45977 before falling to a low of $0.45171.

XRP hits reverse.
XRPUSD 220523 Daily Chart

XRP Technical Indicators

Resistance & Support Levels

R1 – $ 0.4665 S1 – $ 0.4515
R2 – $ 0.4760 S2 – $ 0.4459
R3 – $ 0.4911 S3 – $ 0.4309

XRP needs to move through the $0.4610 pivot to target the First Major Resistance Level (R1) at $0.4665 and the Sunday high of $0.47048. A return to $0.4650 would signal a bullish session. However, SEC v Ripple updates and US debt ceiling-related news must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4760 and resistance at $0.48. The Third Major Resistance Level (R3) sits at $0.4911.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4515 in play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.4450. The Second Major Support Level (S2) at $0.4459 should limit the downside. The Third Major Support Level (S3) sits at $0.4309.

XRP support levels in play below the pivot.
XRPUSD 220523 Hourly Chart

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.45221. 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 more bullish signals.

A bullish cross of the 50-day EMA through the 200-day EMA would support a breakout from R1 ($0.4665) to target R2 ($0.4760) and $0.48. However, a fall through the 50-day EMA ($0.45221) and S1 ($0.4515) would bring S2 ($0.4459) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs remain bullish.
XRPUSD 220523 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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