XRP Bulls to Retarget $0.50 on Building SEC v Ripple Hopes

Bob Mason
Updated: Mar 28, 2023, 05:14 UTC

XRP enjoyed a trend bucking bullish session on Monday. However, news of the CFTC suing Binance will likely test investor confidence today.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Monday, XRP bucked the broader market trend, rallying 6.95% to end the day at $0.47944.
  • Hopes of an imminent Ripple victory in the SEC v Ripple case extended the winning streak to three sessions.
  • The technical indicators remain bullish, signaling a return to $0.50.

On Monday, XRP rallied by 6.95%. Following a 1.05% gain from Sunday, XRP ended the day at $0.47944. XRP avoided sub-$0.44 for the second time since November 2022.

A mixed start to the day saw XRP fall to an early low of $0.44292. Steering clear of the First Major Support Level (S1) at $0.4383, XRP rallied to a midday high of $0.48839. XRP broke through the First Major Resistance Level (R1) at $0.4610 and the Second Major Resistance Level (R2) at $0.4738. Binance news briefly sent XRP to sub-$0.46 before a late move through R1 and R2 to end the day at $0.47944.

Investor Expectations of a Ripple Victory Delivered a Bullish Session

There were no updates from the ongoing SEC v Ripple case to influence investor sentiment on Monday. The lack of updates allowed recent comments from Ripple President Monica Long to resonate.

Amicus Curiae attorney John Deaton also provided support, saying,

“XRP has the most attractive risk/reward ratio IMO. The Judge’s ruling is coming down w/in the next few weeks (maybe this week). If the SEC wins, what’s the downside from 0.45? Ripple appeals, and we get the status quo. Ripple wins, and it’s made clear XRP isn’t a security. Upside?”

The shift in sentiment toward a Ripple victory came after the latest Ripple Court filing, which referenced Court rulings from the Voyager Digital bankruptcy hearings.

The Day Ahead

Investors should monitor the crypto news wire for updates from the SEC v Ripple. Rulings on the latest Court filings, the Hinman Documents, and the Summary Judgment Reply Briefs will influence.

Following the news of the CFTC suing Binance, a Ripple victory couldn’t come at a better time.

However, a lack of SEC v Ripple case updates would continue to leave regulator and lawmaker chatter to draw interest. Binance and Coinbase (COIN) remain in the spotlight.

XRP Price Action

At the time of writing, XRP was up 0.19% to $0.48037. A mixed start to the day saw XRP rise to an early high of $0.48363 before easing back.

XRP holds steady.
XRPUSD 280323 Daily Chart

Technical Indicators

XRP needs to avoid the $0.4703 pivot to target the First Major Resistance Level (R1) at $0.4976. A move through the Monday high of $0.48839 would signal a bullish session. However, the broader crypto market and 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 $0.5157 and resistance at $0.52. The Third Major Resistance Level (R3) sits at $0.5612.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4521 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.45 and the Second Major Support Level (S2) at $0.4248. The Third Major Support Level (S3) sits at $0.3793.

XRP resistance levels in play above the pivot.
XRPUSD 280323 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 $0.43645. 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 S1 ($0.4521) and the 50-day EMA ($0.43645) would support a breakout from R1 ($0.4976) to target R2 ($0.5157) and $0.52. However, a fall through S1 ($0.4521) would bring the 50-day ($0.43645) and S2 ($0.4248) into play. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 280323 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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