XRP Bulls to Target a Return to $0.3550 or Face a Fall to Sub-$0.33

Key Insights:

• On Tuesday, XRP rallied by 2.84% to end the session at $0.34861.
• XRP joined the broader market in a rebound session, with SEC v Ripple updates having a muted impact.
• However, the technical indicators remain bearish, with XRP sitting below the 50-day EMA, supporting a near-term decline to $0.30.

On Tuesday, XRP rallied by 2.84%. Reversing a 3.05% loss from Monday, XRP ended the day at $0.34861. Despite the bullish session, XRP ended the day at sub-$0.35 for the third consecutive day.

A mixed start to the day saw XRP fall to an early morning low of $0.33621. Steering clear of the First Major Support Level (S1) at $0.3297, XRP rallied to a late high of $0.35309. XRP broke through the First Major Resistance Level (R1) at $0.3508 before falling back to end the day at $0.34861.

SEC v Ripple Updates Muted by Visa and Binance News

Updates from the ongoing SEC v Ripple failed to influence on Tuesday. Attorney James Filan shared the latest filings from the case, saying,

“Parties file joint motion for an extension of time, until January 13, 2023, to file the Daubert Motions and accompanying exhibits on the public docket with redactions consistent with the Courts December 19, 2022, sealing ruling.”

On Monday, Judge Torres issued Orders on the Parties’ Motions to Seal Documents in connection with the Expert Challenges.

While the latest filing drags the case further into 2023, investor hopes of a settlement linger. The William Hinman speech-related documents will likely become a focal point should the case go to trial.

With the SEC having made numerous attempts to shield the Hinman documents from the public under the attorney-client privilege, the defense team will use the documents in court.

While the latest updates have failed to provide XRP with direction, Visa (V) and Binance news delivered much-needed support.

This week, Binance.US announced its planned acquisition of Voyager Digital, with news of Visa planning to support Ethereum (ETH) auto-payments also bullish.

Today, investors will need to continue monitoring updates from the SEC v Ripple case. US economic indicators will also draw interest, with consumer confidence figures due out.

XRP Price Action

At the time of writing, XRP was down 0.01% to $0.34859. A mixed start to the day saw XRP rise to an early high of $0.35020 before easing back.

Technical Indicators

XRP needs to avoid the $0.3460 pivot to target the First Major Resistance Level (R1) at $0.3557. A move through the Tuesday high of $0.35309 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3629 and $0.3650 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3797.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3389 into play. However, barring an extended sell-off, XRP should avoid sub-$0.33 and the Second Major Support Level (S2) at $0.3291.

The Third Major Support Level (S3) sits at $0.3122.

Without updates from the SEC v Ripple case, XRP will likely sit in the hands of the broader crypto market and the crypto news wires.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.35937. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.3557) would support a run at the 50-day EMA ($0.35937) and R2 ($0.3629). However, failure to move through the 50-day EMA ($0.35937) would leave XRP at risk of a fall to sub-$0.30.