XRP Bulls Eye a Return to $0.42 to Target $0.45 on Bullish Sentiment

Key Insights:

• On Thursday, XRP fell by 0.86% to end the day at $0.4099.
• A lack of SEC v Ripple updates left XRP in the hands of US lawmakers, regulator chatter, and the broader crypto market.
• However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.

On Thursday, XRP fell by 0.86%. Partially reversing a 1.86% gain from Wednesday, XRP ended the day at $0.4099. XRP avoided a return to sub-$0.40 for the first time in four sessions.

After a choppy morning, XRP rose to a late afternoon high of $0.41938. Falling short of the First Major Resistance Level (R1) at $0.4203, XRP slid to a late low of $0.40865. However, steering clear of the First Major Support Level (S1) at $0.4017, XRP revisited $0.411 levels before easing back.

Cryptomarket News Overshadows a Breakout NASDAQ Index Session

On Thursday, US economic indicators and the NASDAQ Index failed to deliver a bullish XRP session. While Fed Chair Powell’s press conference from Thursday continued resonating, US jobless claims and US corporate earnings provided NASDAQ Index support.

However, in after-hours trading, Amazon.com Inc (AMZN) took a tumble. Amazon.com delivered a gloomy outlook, leading to an after-hours 5.07% slide in response to expectations of lower cloud business sales growth. The warning came ahead of Apple (AAPL) and Alphabet Inc. (GOOGL), which will release results today.

While the NASDAQ Index rallied by 3.25% on Thursday, the XRP joined the broader crypto market in the red. A US DoJ probe into Silvergate Bank and its dealings with FTX and Alameda Research tested buyer appetite. News of Kraken closing its Abu Dhabi office in an ongoing cost-cutting drive was also market negative.

For XRP holders, it remains unclear whether the increase in regulatory scrutiny will sway the Judge. Notably, the lack of rulings from the SEC v Ripple case has left investors on the sidelines, with no clear line of sight on when Court rulings will be forthcoming.

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

US economic indicators and corporate earnings will also provide direction. The US Jobs Report and ISM Non-Manufacturing PMI will influence. Apple (AAPL) and Alphabet Inc. (GOOGL) release results today.

XRP Price Action

At the time of writing, XRP was down 0.16% to $0.40923. A mixed start to the day saw XRP rise to an early high of $0.41134 before falling to a low of $0.40638.

Technical Indicators

XRP needs to move through the $0.4126 pivot to target the First Major Resistance Level (R1) at $0.4166 and the Thursday high of $0.41938. 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 $0.4234 and $0.43. The Third Major Resistance Level (R3) sits at $0.4341.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4059 in play. However, barring a Fed-fueled sell-off, XRP should avoid sub-$0.40. The Second Major Support Level (S2) at $0.4019 should limit the downside. The Third Major Support Level (S3) sits at $0.3912.

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 $0.40698. 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 hold above the 50-day EMA ($0.40698) would support a breakout from R1 ($0.4166) to target R2 ($0.4234) and $0.43. However, a fall through the 50-day EMA ($0.40698) and S1 ($0.4059) would give the bears a run at S2 ($0.4019) and the 100-day EMA ($0.40166). A fall through the 50-day EMA would send a bearish signal.