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XRP Bulls in the Need of an SEC v Ripple Catalyst to Avoid Sub-$0.49

By:
Bob Mason
Updated: Apr 2, 2023, 06:24 GMT+00:00

It was a quiet Saturday session, with no updates from the SEC v Ripple case to provide direction to XRP. Continued silence will likely bring further losses.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Saturday, XRP slid by 5.25% to end the day at $0.50973.
  • A lack of updates from the ongoing SEC v Ripple case led investors to lock in profits as regulators crank up the heat in the US.
  • However, the technical indicators remain bullish, signaling a return to $0.60.

On Saturday, XRP slid by 5.25%. Reversing a 1.07% gain from Friday, XRP ended the day at $0.50973. XRP revisited sub-$0.50 levels for the first time in four sessions.

A mixed start to the day saw XRP rise to an early morning high of $0.53764. Falling short of the First Major Resistance Level (R1) at $0.5494, XRP slid to a late morning low of $0.49790. XRP fell through the First Major Support Level (S1) at $0.5263 and the Second Major Support Level at $0.5146.

Finding late-morning support, XRP briefly revisited the $0.523 handle before falling through S1 and S2 to end the day at $0.50973.

Investors Book Profits as US Regulatory Activity Begins to Bite

It was a quiet Saturday session, with no updates from the SEC v Ripple case to influence investor sentiment.

The lack of updates left investors cautious, leading to the return to sub-$0.50. While optimism of a Ripple victory lingers, increasing US regulatory and lawmaker scrutiny continues to test buyer appetite.

Rulings from the SEC v Ripple case could come at any time, with an SEC victory likely to force other crypto exchanges to shutter their US operations. News of Bittrex planning to shut down its US operations over regulatory uncertainty in the US added to the bearish mood.

The Day Ahead

Investors should monitor the crypto news wires and Twitter for updates from the SEC v Ripple case. However, a lack of updates will leave the SEC and CFTC in focus, with the spotlight on Binance and Coinbase (COIN).

XRP Price Action

At the time of writing, XRP was up 0.90% to $0.51430. A mixed start to the day saw XRP fall to an early low of $0.50201 before rising to a high of $0.51983.

XRP finds early support.
XRPUSD 020423 Daily Chart

Technical Indicators

XRP needs to move through the $0.51510 pivot to target the First Major Resistance Level (R1) at $0.5323 and the Saturday high of $0.53764. A return to $0.52 would signal a bullish session. However, SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5548. The Third Major Resistance Level (R3) sits at $0.5946.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4925 in play. However, barring another extended sell-off, XRP should avoid sub-$0.49 and the Second Major Support Level (S2) at $0.4754. The Third Major Support Level (S3) sits at $0.4356.

XRP support levels in play below the pivot.
XRPUSD 020423 Hourly Chart

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 $0.49969. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.49969) would support a breakout from R1 ($0.5323) to target R2 ($0.5548). However, a fall through the 50-day EMA ($0.49969) would give the bears a run at S1 ($0.4925). A fall through the 50-day EMA would send a bearish signal.

EMAs remain bullish.
XRPUSD 020423 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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