XRP Bulls to Target $0.38 on Easing Bank Contagion Jitters and Fed Bets
- On Thursday, XRP joined the broader crypto market in a relief rally, rising by 1.44% to end the day at $0.36558.
- Swiss National Bank assurances and receding Fed Fear supported XRP and the broader crypto market.
- However, the technical indicators remain bearish, signaling a return to sub-$0.35.
On Thursday, XRP rose by 1.44%. Partially reversing a 3.59% slide from Wednesday, XRP ended the day at $0.36558. Significantly, XRP returned to sub-$0.36 levels for the fourth time in five sessions.
A bearish start to the day saw XRP fall to an early low of $0.35772. Steering clear of the First Major Support Level (S1) at $0.3525, XRP rose to a high of 0.36774. Falling short of the First Major Resistance Level (R1) at $0.3728, XRP eased back to end the day at $0.36558. XRP fell short of the $0.37 handle for the first time since January 10.
XRP Enjoys BTC and NASDAQ Support on Receding Bank Crisis Fears
It was yet another quiet day for XRP on Thursday, with no SEC v Ripple case updates to influence investor sentiment. The lack of updates left XRP in the hands of the global financial markets and bitcoin (BTC).
Receding Silicon Valley Bank (SIVB) and Signature Bank (SBNY) contagion risk drove demand for riskier assets. Assurances from governments and central banks of support and containment eased investor fears of another global financial crisis.
Easing Fed Fear added to the bullish mood, with US economic indicators doing little to sway market bets in favor of a 50-basis point Fed interest rate hike.
On Thursday, the NASDAQ Composite Index rose by 2.48%, with the Dow and S&P 500 seeing gains of 1.17% and 1.76%, respectively. The NASDAQ mini was down 4.5 points this morning.
The Day Ahead
US economic indicators will draw interest this afternoon. A pickup in consumer confidence should drive demand for riskier assets. The sub-components could spook investors. A spike in inflation expectations would test investor appetite for riskier assets. However, the numbers shouldn’t influence the Fed when considering the latest inflation and retail sales figures.
Away from the economic calendar, updates from the ongoing SEC v Ripple case will remain the key driver. Investors await rulings relating to the Hinman Documents and Summary Judgment Reply Briefs, amongst others.
However, investors should continue monitoring the crypto news wires, with Binance and FTX news, regulatory activity, and lawmaker chatter focal points.
XRP Price Action
At the time of writing, XRP was up 0.68% to $0.36805. A mixed start to the day saw XRP fall to an early low of $0.36310 before rising to a high of $0.36832.
XRP needs to avoid the $0.3637 pivot to target the First Major Resistance Level (R1) at $0.3696. A move through the Thursday high of $0.36774 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 an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3737. The Third Major Resistance Level (R3) sits at $0.3837.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3596 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.35. The Second Major Support Level (S2) at $0.3537 should limit the downside. The Third Major Support Level (S3) sits at $0.3436.
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 $0.36988. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The EMAs delivered bearish signals.
A move through R1 ($0.3696) and the 50-day EMA ($0.36988) would give the bulls a run at the 100-day EMA ($0.37315) and R2 ($0.3737). However, failure to move through the 50-day EMA ($0.36988) would leave S1 ($0.3596) in play.
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