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XRP Bulls to Target $0.40 on a Deepening Global Banking Crisis

By:
Bob Mason
Updated: Mar 19, 2023, 06:40 GMT+00:00

XRP saw red on Saturday. However, the loss was modest as investors consider the SEC v Ripple case and the deepening global banking crisis.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Saturday, XRP fell by 1.34% to end the day at $0.37448.
  • News of Credit Suisse sitting on the brink of collapse tested investor sentiment as UBS and Credit Suisse entered talks to prevent another global financial crisis.
  • The technical indicators remained bullish, signaling a return to $0.40.

On Saturday, XRP fell by 1.34%. Partially reversing a 3.83% gain from Friday, XRP ended the day at $0.37448. Despite the bearish session, XRP revisited the $0.39 handle for the first time since March 9.

A bullish start to the day saw XRP rally to an early high of $0.39041. XRP broke through the First Major Resistance Level (R1) at $0.3872 before sliding to a late afternoon low of $0.37040. However, steering clear of the First Major Support Level (S1) at $0.3675, XRP revisited the $0.3819 handle before falling back into negative territory.

XRP Tracks BTC into the Red as the Banking Crisis Deepens

It was a quiet Saturday, with no updates from the ongoing SEC v Ripple case for investors to consider. While investors await rulings on the Hinman Documents and the Summary Judgment Reply Briefs, banking sector news continued to grab the headlines.

News of the Swiss cabinet holding a crisis meeting to discuss the future of Credit Suisse Group AG (CS) tested buyer appetite. On Saturday, reports of UBS AG (UBS) requesting the Swiss government to cover circa $6 billion in costs to acquire Credit Suisse Group AG sounded the alarm bells.

Events from Saturday demonstrated that the dust has yet to settle from the collapse of Silicon Valley Bank and Signature Bank (SBNY).

However, XRP and the broader crypto market showed resilience as the banking sector gets hit with bank runs. This week, the crypto market found favor as investors searched for alternative means to store money.

With UBS AG and Credit Suisse Group AG in talks to avert a Monday catastrophe, XRP and the broader crypto market found investor support this morning. BTC is up 0.88% to $27,151, with the total crypto market cap up 0.99% to $1,125 billion.

The Day Ahead

Investors should continue to monitor the news wires for banking sector-related news and SEC v Ripple updates.

However, investors should also continue tracking news related to Binance and FTX, with regulatory activity and lawmaker chatter likely to move the dial. This weekend, lawmakers and regulators have yet to return their attention to the crypto market as the banking crisis deepens.

A UBS-Credit Suisse deal should ease market tensions and uncertainty ahead of the Fed interest rate decision. In the final hour, the NASDAQ mini will give investors a sense of how the week could unfold.

XRP Price Action

At the time of writing, XRP was up 0.76% to $0.37731. A mixed start to the day saw XRP fall to an early low of $0.37392 before rising to a high of $0.37827.

XRP finds early support.
XRPUSD 190323 Daily Chart

Technical Indicators

XRP needs to move through the $0.3784 pivot to target the First Major Resistance Level (R1) at $0.3865 and the Saturday high of $0.39041. A return to $0.3850 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 $0.3984 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4185.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3665 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.36 and the Second Major Support Level (S2) at $0.3584. The Third Major Support Level (S3) sits at $0.3384.

XRP support levels in play below the pivot.
XRPUSD 190323 Hourly Chart

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.37421. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bullish signals.

A move through the 200-day EMA ($0.37795) would support a breakout from R1 ($0.3865) to target R2 ($0.3984) and $0.40. However, a fall through the 100-day ($0.37421) and 50-day ($0.37305) EMAs would bring S1 ($0.3655) into play. A fall through the 50-day EMA would send a bearish signal.

EMAs remain bullish.
XRPUSD 190323 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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