XRP Bulls to Target $0.5250 on Lingering Hopes of a Ripple Victory

Key Insights:

• On Wednesday, XRP joined the broader crypto market in positive territory, rising by 0.55% to end the day at $0.50646.
• Broader crypto market support and SEC v Ripple chatter supported a bullish session.
• The technical indicators are mixed, signaling a choppy Thursday session.

On Wednesday, XRP rose by 0.55%. Following a 1.51% gain on Tuesday, XRP ended the day at $0.50646. Notably, XRP avoided sub-$0.49 for the first time in three sessions.

A mixed start to the day saw XRP fall to an early morning low of $0.49885. Steering clear of the First Major Support Level (S1) at $0.4915, XRP rallied to a mid-morning high of $0.52646.

XRP briefly broke through the First Major Resistance Level (R1) at $0.5117 and the Second Major Resistance Level (R2) at $0.5197 before falling back to sub-$0.50. Finding late support, XRP bounced back to end the session at $0.50646.

Dip Buyers Return on Optimistic Sec v Ripple Case Chatter

It was a quiet Wednesday, with no SEC v Ripple case updates to provide direction. The lack of updates left XRP in the hands of case-related chatter.

Amicus Curiae John Deaton shared his views on the SEC v Ripple case on Twitter. On Tuesday, Deaton had this to say about the case,

“Ripple Lawyer: No secondary sale of an asset has ever been found to be a security in US history, that’s why XRP is a commodity.”

Ripple President Monica Long also delivered support, sharing some Ripple platform payment statistics. Long said,

“The US< > Mexico corridor sees 10s of billions of $ in payments every year (remittances, treasury, you name it), and last year bitso processed $3.3 billion of that through crypto with Ripple and others.”

The Day Ahead

Investors should monitor the crypto news wires and Twitter for updates from the SEC v Ripple case. A lack of updates will leave regulatory activity in the spotlight. Binance and Coinbase (COIN)-related news will also move the dial.

US initial jobless claims figures will also draw interest in the afternoon session.

XRP Price Action

At the time of writing, XRP was down 1.25% to $0.50014. A bearish start to the day saw XRP fall from an opening price of $0.50577 to a low of $0.49993.

Technical Indicators

XRP needs to move through the $0.5106 pivot to target the First Major Resistance Level (R1) at $0.5223 and the Wednesday high of $0.52646. A return to $0.5150 would signal a bullish session. However, 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 $0.5382 and resistance at $0.54. The Third Major Resistance Level (R3) sits at $0.5658.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4947 in play. However, barring an extended sell-off, XRP should avoid sub-$0.4850 and the Second Major Support Level (S2) at $0.4830. The Third Major Support Level (S3) sits at $0.4554.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.50449. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The EMAs delivered mixed signals.

A move through the 50-day EMA ($0.50449) would support a breakout from R1 ($0.5223) to target R2 ($0.5382) and $0.54. However, failure to move through the 50-day EMA ($0.50449) would leave S1 ($0.4947) in play. A move through the 50-day EMA would send a bullish signal.