XRP Bulls to Target $0.43 on Sentiment toward the SEC v Ripple Case

Key Insights:

• On Friday, XRP slid 4.20% to end the day at $0.42571.
• European banking sector woes and Binance-related news overshadowed optimism toward a Ripple victory in the SEC v Ripple case.
• However, the technical indicators remain bullish, signaling a return to $0.50.

On Friday, XRP slid by 4.20%. Partially reversing a 5.26% rally from Thursday, XRP ended the day at $0.42571. Despite the bearish session, XRP avoided sub-$0.41 for the second time since November 2022.

Bearish throughout the session, XRP slid from an opening price of $0.44452 to a late afternoon low of $0.41492. XRP briefly fell through the First Major Support Level (S1) at $0.4196 before wrapping up the day at $0.42571.

Binance and European Banking Sector Woes Overshadow Investor Optimism

There were no further updates from the ongoing SEC v Ripple case to influence investor sentiment on Friday.

This week, investors responded to a filing to support Ripple’s fair notice defense and a stern SEC response, with the SEC characterizing the Defendants as shameless.

Hopes of a Ripple victory failed to deliver price support. Mid-week, recently appointed Ripple Labs President Monica Long shared the market optimism of a Ripple win.

News of Binance employees assisting users to evade KYC controls weighed on investor sentiment. The latest rumor could draw greater US regulatory and lawmaker scrutiny at a difficult time for the platform.

However, the news of Binance suspending deposits and withdrawals affected investor sentiment. A technical glitch forced Binance to suspend spot trading and deposits and withdrawals. While services have resumed, XRP and the broader market remained deep in negative territory.

Banking news from Europe added to the market angst, with Deutsche Bank (DB) becoming the latest to suffer at the hands of banking sector jitters.

The Day Ahead

Investors should monitor updates from the SEC v Ripple case. Court rulings on the Hinman Documents and the Summary Judgment Reply Briefs could come at any moment. However, investors should also track the news wires for a Court response to the Ripple and SEC filings.

A lack of SEC v Ripple case updates would leave regulator and lawmaker chatter to test sentiment, with Binance and Coinbase (COIN)-related news to influence.

Investors should also consider banking sector-related news, with Deutsche Bank in the spotlight.

XRP Price Action

At the time of writing, XRP was down by 0.03% to $0.42559. A mixed start to the day saw XRP rise to an early high of $0.42656 before falling to a low of $0.42374.

Technical Indicators

XRP needs to move through the $0.4284 pivot to target the First Major Resistance Level (R1) at $0.4418 and the Friday high of $0.44452. A return to $0.43 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 $0.4580. The Third Major Resistance Level (R3) sits at $0.4876.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4122 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.40 and the Second Major Support Level (S2) at $0.3988. The Third Major Support Level (S3) sits at $0.3692.

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 $0.41232. The 50-day EMA pulled 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 the 50-day EMA ($0.41232) would support a breakout from R1 ($0.4418) to target R2 ($0.4580). However, a fall through the 50-day ($0.41232) and S1 ($0.4122) would bring S2 ($0.3988) and the 100-day EMA ($0.39846) into play. A fall through the 50-day EMA would send a bearish signal.