XRP Bulls Continue to Face Resistance at $0.42 on SEC v Ripple Silence

Key Insights:

• On Saturday, XRP fell by 0.28% to end the day at $0.41092.
• There were no updates from the SEC v Ripple case to provide direction, leaving the broader crypto market to provide direction.
• The technical indicators remain bullish, with XRP sitting at the 50-day EMA, signaling a return to $0.45.

On Saturday, XRP rose by fell by 0.28%. Partially reversing a 0.53% gain from Friday, XRP ended the day at $0.41092. XRP avoided a return to sub-$0.40 for the third consecutive session.

A bearish start to the day saw XRP fall to a mid-morning low of $0.40792. Steering clear of the First Major Support Level (S1) at $0.4073, XRP rallied to a late afternoon high of $0.42044. XRP broke through the First Major Resistance Level (R1) at $0.4183 and the Second Major Resistance Level (R2) at $0.4184 before sliding back into the red.

Fed Fear Tests Buyer Appetite on SEC v Ripple Silence

It was a quiet Saturday session, with no updates from the SEC v Ripple case to provide direction. The lack of updates left XRP in the hands of the broader crypto market. Market sentiment towards a pickup in lawmaker and regulatory scrutiny and Fed monetary policy left XRP in the red.

Despite the bearish session, XRP continued to avoid a return to sub-$0.40, suggesting investor optimism toward the outcome of the SEC v Ripple case. However, the silence has also capped the upside, with XRP last visiting the $0.43 handle on January 24.

Today, a lack of updates from the SEC v Ripple case will leave the broader crypto market to influence. Investors need to monitor the crypto news wires for Silvergate, FTX, and Genesis updates. Regulatory chatter will also influence, with regulatory risk a crypto market headwind.

XRP Price Action

At the time of writing, XRP was down 0.59% to $0.40851. A mixed start to the day saw XRP rise to an early high of $0.41187 before falling to a low of $0.40718.

Technical Indicators

XRP needs to move through the $0.4131 pivot to target the First Major Resistance Level (R1) at $0.4183 and the Saturday high of $0.42044. A return to $0.4150 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 SEC v Ripple-fueled extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4256 and resistance at $0.43. The Third Major Resistance Level (R3) sits at $0.4381.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4057 in play. However, barring a broad-based crypto sell-off, XRP should avoid sub-$0.40. The Second Major Support Level (S2) at $0.4006 should limit the downside. The Third Major Support Level (S3) sits at $0.3881.

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

At the time of writing, XRP sat at the 50-day EMA, currently at $0.40858. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The signals were mixed.

A breakout from the 50-day EMA ($0.40858) would support a move through R1 ($0.4183) to target R2 ($0.4256) and $0.43. However, a pullback from the 50-day EMA ($0.40858) would support a fall through S1 ($0.4057) to give the bears a run at the 100-day EMA ($0.40369) and S2 ($0.4006). A move through the 50-day EMA would send a bullish signal.