XRP Bulls Eye Return to $0.48 on US Earnings and Debt Ceiling Vote

Key Insights:

• On Wednesday, XRP joined the broader crypto market in the red, falling by 1.61% to end the day at $0.46217.
• US government debt ceiling woes overshadowed US economic indicators and corporate earnings on another day of SEC v Ripple silence.
• The technical indicators remain bearish, signaling a return to sub-$0.43.

On Wednesday, XRP fell by 1.61%. Partially reversing a 2.02% gain from Tuesday, XRP ended the day at $0.46217. Despite the bearish session, XRP revisited the $0.48 handle for the second time since April 20.

Tracking the broader market, XRP rose to a midday high of $0.48295. XRP broke through the First Major Resistance Level (R1) at $0.4772 before sliding to a low of $0.43327. XRP briefly fell through the First Major Support Level (S1) at $0.4566 and the Second Major Support Level (S2) at $0.4435 before a partial recovery to end the day at $0.46217.

US Government Debt Ceiling Overshadows US Stats and Earnings

On Wednesday, Microsoft (MSFT) and Alphabet Inc. (GOOGL) delivered better-than-forecast earnings, supporting a bullish start to the day. First Republic Bank’s (FRC) troubles also supported the demand for crypto assets.

However, uncertainty over the government debt ceiling weighed on XRP and the broader crypto market overnight. XRP fell by 6.13% in a single-hour flight to safety.

There were no updates from the ongoing SEC v Ripple case to distract investors. However, Amicus Curiae attorney John Deaton was in the mix.

On Wednesday, the Zakinov case was in the spotlight, with Amicus Curiae attorney John Deaton attending the hearing via Zoom.

By way of background, the plaintiffs claim that Ripple sold XRP as an unregistered security and are asking the Court to certify a class of all XRP holders who purchased and now hold XRP or sold XRP at a loss.

While unrelated to the SEC v Ripple case, a ruling for the Plaintiff would stir the pot.

The Day Ahead

SEC v Ripple case updates will remain the focal point, with US regulatory activity and lawmaker chatter also likely to influence. Investors should monitor Binance and Coinbase (COIN)-related news.

However, silence from the Courts would give the US economic and earnings calendars more influence.

US Q1 GDP and initial jobless claims will influence the afternoon. Weaker-than-expected growth in Q1 and a spike in jobless claims would fuel recessionary fears. However, the US government debt ceiling and corporate earnings will also need monitoring.

Big names on the US earnings calendar include Amazon.com (AMZN), Mastercard (MA), Intel (INTC), and Caterpillar (CAT). We expect Amazon.com’s earnings to have more influence.

XRP Price Action

At the time of writing, XRP was down 0.19% to $0.46129. A mixed start to the day saw XRP rise to an early high of $0.46972 before falling to a low of $0.45917.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to avoid the $0.4595 pivot to target the First Major Resistance Level (R1) at $0.4857. A breakout from the Wednesday high of $0.48295 would signal a bullish session. However, US economic indicators, earnings, and SEC v Ripple chatter must support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5091. The Third Major Resistance Level (R3) sits at $0.5588.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4360 into play. However, barring a risk-off-fueled extended sell-off, XRP should avoid sub-$0.43 and the Second Major Support Level (S2) at $0.4098. The Third Major Support Level (S3) sits at $0.3601.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.47290. The 50-day EMA pulled further back from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA. The EMAs delivered bearish signals.

A move through the 50-day ($0.47290) and 200-day ($0.47837) EMAs would support a breakout from the 100-day EMA ($0.48280) and R1 ($0.4857) to target R2 ($0.5091). However, failure to move through the 50-day EMA ($0.47290) would leave S1 ($0.4360) in view. A move through the 50-day EMA would send a bullish signal.