XRP Bulls Eye a Return to $0.5250 on US Jobs Report and Fed Bets

Key Insights:

• On Thursday, XRP joined the broader crypto market in negative territory, falling by 1.99% to end the day at $0.50655.
• XRP joined the broader crypto market in the red on SEC v Ripple silence.
• However, the technical indicators remain bullish, signaling a return to $0.55.

On Thursday, XRP fell by 1.99%. Following a 0.91% loss on Wednesday, XRP ended the day at $0.50655. While falling for a second session, XRP avoided sub-$0.50 for the second consecutive day.

A bearish start to the day saw XRP fall from an opening price of 0.51679 to an early afternoon low of $0.50188. XRP fell through the First Major Support Level (S1) at $0.5027 before briefly retesting resistance at $0.51. However, a bearish end to the day left XRP at $0.50655.

SEC v Ripple Silence Left XRP in the Hands of the Crypto Market

It was a quiet Thursday, with no SEC v Ripple case-related updates to influence. The lack of updates left XRP to track the broader crypto market in a relatively choppy session.

Economic indicators, central bank chatter, and updates from DC on the progress of the Debt Limit Suspension Bill contributed to the choppy session.

While investors await the release of the William Hinman speech-related document, Ripple Head of Policy Susan Friedman had this to say,

“While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by the House Committee on Agriculture is equally so. Congressman GT Thompson has been a steadfast supporter of the call for clarity in this space.”

With the US government on the way to avert a default, attention will likely revert to the digital asset space. Increased scrutiny would leave investors reliant upon a Ripple victory to change the narrative.

The Day Ahead

It is a quiet Friday session. Updates from Capitol Hill will draw interest as the US Senate aims to push through the US Debt Limit Suspension Bill. Reportedly, the Senate selected 11 amendments to debate before putting the Bill up for a vote.

This afternoon, US economic indicators will also draw interest, with the US Jobs Report likely to draw plenty of interest. Better-than-expected numbers could test the market theory of a Fed pause in June.

However, SEC v Ripple updates will remain the key driver. Investors should also track SEC activity and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was up 0.53% to $0.50926. A mixed start to the day saw XRP fall to an early low of $0.50393 before rising to a high of $0.50947.

Technical Indicators

Resistance & Support Levels

XRP needs to avoid the $0.5084 pivot to target the First Major Resistance Level (R1) at $0.5149 and the Thursday high of $0.51679. A return to $0.51 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5233 and resistance at $0.5250. The Third Major Resistance Level (R3) sits at $0.5382.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5000 into play. However, barring a debt ceiling vote-fueled sell-off, XRP should avoid sub-$0.4950 and the Second Major Support Level (S2) at $0.4935. The Third Major Support Level (S3) sits at $0.4786.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.48984. The 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the Major Support Levels and the 50-day EMA ($0.48984) would support a breakout from R1 ($0.5149) to target R2 ($0.5233). However, a fall through S1 ($0.5000) would bring S2 ($0.4935) and the 50-day EMA ($0.48984) into view. A fall through the 50-day EMA would send a bearish signal.