XRP Bulls Are in Control with a Return to $0.40 Bringing $0.45 into View

Key Insights:

• On Friday, XRP slipped by 1.58% to mark the fourth loss in eight sessions.
• XRP took a late hit to give up gains from earlier in the day, with market sentiment towards Fed monetary policy becoming a tailwind.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA.

On Friday, XRP fell by 1.58%. Partially reversing a 4.01% rally from Thursday, XRP ended the day at $0.3680.

A bullish start to the day saw XRP rise to an early high of $0.3798.

Falling well short of the First Major Resistance Level at $0.3856, XRP slid to a late afternoon low of $0.3596.

Steering clear of the First Major Support Level at $0.3557, XRP bounced back to $0.373 levels before falling back into the red.

There were no news updates from the SEC v Ripple case to influence, leaving XRP in the hands of US economic indicators.

US Economic Indicators Ease Fears of a 75-Basis Point Hike

On Friday, US inflation and personal spending figures drew investor interest. The numbers were crypto-market friendly.

Inflationary pressures picked up modestly in June, while personal spending jumped. However, following Thursday’s Q2 GDP numbers, bets of a 75 basis point September rate hike receded, with the latest inflation figures supporting the latest shift in sentiment towards Fed monetary policy.

The Core PCE Price Index increased by 4.8%, year-over-year, versus a forecast and May 4.7% rise.  For the markets, the Fed’s preferred measure showed inflation picking up at a slower pace than the consumer price index. According to the CPI figures, the US annual rate of inflation accelerated from 8.6% to 9.1% in June.

Personal spending increased by 1.1% in June, which was also positive. Economists forecast a 0.9% rise following a modest 0.3% increase in May.

Going into the weekend, there are no updates from the SEC v Ripple case to distract investors.

Near-term, the key ruling remains the court ruling on the SEC objection to the court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was up 9.29% to $0.4022.

A bullish morning saw XRP surge from an early low of $0.3633 to a high of $0.4052.

XRP broke through the First Major Resistance Level (R1) at $0.3787 and the Second Major Resistance Level (R2) at $0.3893.

However, falling short of the Third Major Resistance Level (R3) at $0.4095, XRP briefly slipped back to sub-$0.40.

Technical Indicators

XRP needs to avoid a fall through R2, R1, and the $0.3691 pivot to retarget the Third Major Resistance Level (R3) at $0.4095.

XRP would need support from the broader market to break out from the morning high of $0.4052.

In the case of an extended crypto rally throughout the session, XRP could target resistance at $0.45.

A fall through R2, R1, and the pivot would bring the First Major Support Level (S1) at $0.3585 in play.

Barring an extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3489.

The Third Major Support Level sits at $0.3287.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.3588. Following the 100-day EMA bullish cross through the 200-day EMA, the 100-day EMA widened the gap from the 200-day EMA, supporting an XRP breakout.

A widening of the 50-day EMA from the 100-day EMA would support a run at $0.42.