XRP Bulls to Target $0.53 as Bullish Sentiment Sweeps the Crypto Market

Key Insights:

• On Monday, XRP gained 2.39% to end the day at $0.51797.
• A broad-based crypto rally, fueled by a BTC run at $30,000, delivered support.
• The technical indicators are bullish, signaling a return to $0.55.

On Monday, XRP rose by 2.39%. Following a 0.10% gain on Sunday, XRP ended the day at $0.51797. Notably, XRP avoided sub-$0.50 for the second time in three sessions.

A bearish start to the day saw XRP fall to an early low of $0.50049. Finding support at the First Major Support Level (S1) at $0.5005, XRP jumped to a final-hour high of $0.51998. XRP broke through the First Major Resistance Level (R1) at $0.5100 and the Second Major Resistance Level (R2) at $0.5142 to wrap up the day at $0.51797.

SEC v Ripple Case Silence Leaves XRP Tracking the Broader Market

It was another quiet session on Monday, with no SEC v Ripple case updates for investors to consider. The lack of Court rulings left XRP in the hands of the broader crypto market.

US-China tensions and resurfacing fears of a Fed-fueled US recession and a global liquidity crunch drove demand for BTC and the broader crypto market. On Monday, the total crypto market cap surged by 3.16% ($36.34 billion) to $1,187 billion.

Presidential candidate Robert F Kennedy Jr also drew crypto investor interest on Monday. The Democratic candidate had this to say,

“Cryptocurrencies like bitcoin give the public an escape route from the splatter zone when this bubble invariably bursts. So the White House is colluding with the banksters to keep us all trapped in the bubble of profiteering and control.”

The Day Ahead

Investors should track the crypto news wires and Twitter chatter. SEC v Ripple case chatter will provide direction. However, a lack of Court rulings from the SEC v Ripple case would leave regulatory activity in the spotlight. Binance and Coinbase (COIN) commentary will also move the dial.

There are no US economic indicators to influence the afternoon session, with increasing bets of a 25-basis point interest rate hike in May fueling fears of a US recession and possibly more.

XRP Price Action

At the time of writing, XRP was down 0.65% to $0.51460. A mixed start to the day saw XRP rise to an early high of $0.51799 before falling to a low of $0.51416.

Technical Indicators

XRP needs to avoid the $0.5128 pivot to target the First Major Resistance Level (R1) at $0.5251. A move through the Monday high of $0.51998 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 $0.5323 and resistance at $0.5350. The Third Major Resistance Level (R3) sits at $0.5518.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5056 into play. However, barring an extended sell-off, XRP should avoid sub-$0.5000 and the Second Major Support Level (S2) at $0.4933. The Third Major Support Level (S3) sits at $0.4738.

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 $0.50665. 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 ($0.50665) would support a breakout from R1 ($0.5251) to target R2 ($0.5323) and $0.5350. However, a fall through the 50-day EMA ($0.50665) would bring S1 ($0.5056) and sub-$0.50 into view. A fall through the 50-day EMA would send a bearish signal.