XRP Bulls to Retarget $0.48 on SEC v Ripple-Related News

Bob Mason
Published: May 23, 2023, 02:27 UTC

It is a busier day for XRP. US private sector PMIs and Fed chatter will draw interest. However, US debt ceiling talks will remain the focal point.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Monday, XRP resumed the upward trend, gaining 1.05% to end the day at $0.46179.
  • SEC v Ripple chatter fueled optimism toward the SEC v Ripple case, with US debt ceiling news providing support.
  • The technical indicators remain bullish, signaling a return to $0.50.

On Monday, XRP rose by 1.05%. Partially reversing a 2.49% loss from Sunday, XRP ended the day at $0.46179. Significantly, XRP saw green for the eighth time in nine sessions.

A bearish start to the day saw XRP fall to a first-hour low of $0.45000. Finding support at the First Major Support Level (S1) at $0.4515, XRP rose to a mid-morning high of $0.46747. XRP broke through the First Major Resistance Level (R1) at $0.4665 before briefly returning to sub-$0.4550. However, XRP found late support to wrap up the day at $0.46179.

SEC v Ripple Case-Related Chatter Debt Ceiling News Supported

It was a quiet start to the week. There were no updates from the ongoing SEC v Ripple case to influence. The lack of updates left XRP in the hands of SEC v Ripple case chatter and US debt ceiling-related news for a second session.

Over the weekend, the Amicus Curiae attorney John Deaton shared a document from the SEC v Ripple case, Exhibit 220, which notes reasonable grounds XRP doesn’t satisfy ALL Howey factors. Deaton added that Exhibit 220 is part of the SEC emails due for release next month.

However, investors showed a limited response to the latest updates, with bets on an SEC v Ripple settlement doing the rounds.

While there were no material updates from the SEC v Ripple case for investors to consider, the US debt ceiling crisis remained a focal point. On Monday, Speaker of the House Kevin McCarthy said that talks were moving in the right direction, easing fears of a US default and resulting financial crisis.

The Day Ahead

It is a busy Tuesday session for XRP and the broader crypto market. US private sector PMI numbers for May will influence this afternoon. With investors looking for cracks in the US economy, the Services and Manufacturing sector PMIs will provide direction. However, we expect the Services PMI to have more impact.

While the stats will influence, Fed chatter, and US government debt-related news will also need consideration. Progress toward a debt ceiling deal would be a bullish price scenario.

Investors should also continue to track SEC v Ripple updates and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was up 0.05% to $0.46200. A mixed start to the day saw XRP rise to an early high of $0.46351 before falling to a low of $0.45118.

XRP finds early support.
XRPUSD 230523 Daily Chart

Technical Indicators

Resistance & Support Levels

R1 – $ 0.4695 S1 – $ 0.4520
R2 – $ 0.4772 S2 – $ 0.4423
R3 – $ 0.4947 S3 – $ 0.4248

XRP needs to avoid the $0.4598 pivot to target the First Major Resistance Level (R1) at $0.4695. A move through the Monday high of $0.46747 would signal a bullish session. However, SEC v Ripple updates and US debt ceiling-related news must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4772 and resistance at $0.48. The Third Major Resistance Level (R3) sits at $0.4947.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4520 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.4450 and the Second Major Support Level (S2) at $0.4423. The Third Major Support Level (S3) sits at $0.4248.

XRP resistance levels in play above the pivot.
XRPUSD 230523 Hourly Chart

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

At the time of writing, XRP sat above the 200-day EMA, currently at $0.45508. The 50-day EMA converged on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered more bullish signals.

A bullish cross of the 50-day EMA through the 200-day EMA would support a breakout from R1 ($0.4695) to target R2 ($0.4772) and $0.48. However, a fall through the 200-day ($0.45508) and 50-day ($0.45411) EMAs would bring S1 ($0.4520) and the 100-day EMA ($0.45110) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 230523 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.

Did you find this article useful?