XRP Bulls to Target $0.55 as Investors Await the Hinman Documents
- On Tuesday, XRP extended the winning streak to six sessions, gaining 5.48% to end the day at $0.52161.
- Investor optimism toward a Ripple victory in the ongoing SEC v Ripple case and network news delivered support.
- The technical indicators are bullish, signaling a return to $0.55.
On Tuesday, XRP rallied by 5.48%. Following a 2.47% gain from Monday, XRP ended the day at $0.52161. Significantly, XRP wrapped up the day at $0.52 for the first time since April.
A bearish start to the day saw XRP fall to an early morning low of $0.48958 before making a move. Steering clear of the First Major Support Level (S1) at $0.4821, XRP rallied to a late-session high of $0.52868. XRP broke through the Major Resistance Levels before falling through R3 ($0.5265) to end the day at $0.52161.
SEC v Ripple Case Optimism and Network News Delivered Support
It was a quiet Tuesday session, with no SEC v Ripple case-related news updates to provide direction. The lack of updates continued to leave XRP investors in an optimistic mood. On June 13, the SEC will release the William Hinman speech-related documents that could tilt the scales of justice in Ripple’s favor.
Network activity contributed to the upside. According to Santiment, the XRP network had its second and third-largest address activity spikes of all time over the last two days. Santiment shared the news, saying,
“A mild +4% decoupling has emerged between XRP & the altcoin pack, and if history repeats itself from the March 18th activity spike, it could be more.”
The Day Ahead
It is a relatively busy Wednesday session. US economic indicators and Fed commentary will influence the afternoon. JOLTs Job Openings will draw interest as investors turn their attention to the US labor market ahead of Friday’s Jobs Report.
With rising bets on a June interest rate hike, FOMC member chatter will also need consideration. FOMC members Harker and Bowman will speak today.
However, US debt ceiling-related news will remain the focal point, with the markets expecting US lawmakers to vote on the deal today.
While the US economic calendar and updates from Washington will influence, SEC v Ripple case updates would have more impact.
XRP Price Action
At the time of writing, XRP was down 0.70% to $0.51794. A mixed start to the day saw XRP rise to an early high of $0.52208 before falling to a low of $0.51667.
XRP Technical Indicators
Resistance & Support Levels
|R1 – $||0.5370||S1 – $||0.4979|
|R2 – $||0.5524||S2 – $||0.4742|
|R3 – $||0.5915||S3 – $||0.4351|
XRP needs to avoid the $0.5133 pivot to target the First Major Resistance Level (R1) at $0.5370. A move through the Tuesday high of $0.52868 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5524. The Third Major Resistance Level (R3) sits at $0.5915.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4979 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.48 and the Second Major Support Level (S2) at $0.4742. The Third Major Support Level (S3) sits at $0.4351.
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 $0.47805. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.
A hold above S1 ($0.4979) and the 50-day EMA ($0.47805) would support a breakout from R1 ($0.5370) to target R2 ($0.5524). However, a fall through S1 ($0.4979) and the 50-day EMA ($0.47805) would bring S2 ($0.4742) into view. A fall through the 50-day EMA would send a bearish signal.