XRP Bulls Target a Return $0.40 on Brad Garlinghouse Comments

Key Insights:

• On Saturday, XRP rose for the third consecutive session to end the day at $0.38396.
• Ripple network updates delivered XRP price support, with sentiment towards the SEC v Ripple case providing a cushion.
• However, the technical indicators are bearish, with XRP sitting below the 100-day EMA, signaling a possible return to sub-$0.35.

On Saturday, XRP rose by 0.38%. Following a 0.10% gain on Friday, XRP ended the day at $0.38396. Notably, XRP rose for a third consecutive session while falling short of $0.40 for the ninth day.

A bearish start to the day saw XRP fall to a mid-morning low of $0.37528. XRP fell through the First Major Support Level (S1) at $0.3756 before rallying to a late high of $0.38780. However, falling short of the First Major Resistance Level (R1) at $0.3882, XRP eased back to end the day at sub-$0.3850.

Ripple News Provided Price Support Amidst Lingering Contagion Risk

Overnight, Ripple continued to grab the crypto news headlines. Ripple CEO Brad Garlinghouse talked to the UK’s The Times, saying,

“He would pick over the carcass of FTX and would be interested in buying the parts that served business customers, as well as its stakes in other companies.”

Garlinghouse’s comments reflected Ripple’s liquidity position, which would allow Ripple to acquire FTX assets.

However, there were no updates from the ongoing SEC v Ripple case to influence. The November 18 deadline for Amicus Brief filings has passed, with the focus now turning to November 30. Parties must file summary judgment reply briefs temporarily under seal by the end of the month.

Investor optimism toward the outcome of the SEC v Ripple case remains positive. The following counterparties and representatives filed Amicus Briefs by the November 18 deadline:

Chamber of Digital Commerce, I-Remit, TapJets, I-CAN, Spend-the-Bits, Coinbase, The Blockchain Association, Paradigm Ops, VeriDAO, Reaper Financial, CCI, Cryptillian, NSEI, Valhil Capital, and John Deaton on behalf of XRP holders.

XRP Price Action

At the time of writing, XRP was up 1.90% to $0.39126. A bullish start to the day saw XRP rise from an early low of $0.38332 to a high of $0.39540.

XRP broke through the First Major Resistance Level (R1) at $0.3894 to test the Second Major Resistance Level (R2) at $0.3949.

Technical Indicators

XRP needs to hold above R1 and the $0.3823 pivot to retarget the Second Major Resistance Level (R2) at $0.3949 and $0.40. A move back through the morning high of $0.39540 would signal a breakout session.

In the case of an extended rally, the bulls would take a run at $0.40 and the Third Major Resistance Level (R3) at $0.4074.

However, a fall through R1 and the pivot would bring the First Major Support Level (S2) at $0.3769 into play. Barring an extended sell-off, XRP should avoid sub-$0.3750 and the Second Major Support Level (S2) at $0.3698. The Third Major Support Level (S3) sits at $0.3573.

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

At the time of writing, XRP sat below the 100-day EMA, currently at $0.39779. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA. The signals were mixed.

A move through R2 ($0.3940) and the 100-day EMA ($0.39779) would support a breakout from $0.40 to target R3 ($0.4074). However, a fall through the 50-day EMA ($0.38223) would give the bears a run at S1 ($0.3769) and sub-$0.37. The 200-day EMA sits at $0.41842.