XRP Bulls to Target a Return to $0.40 on the Fed and the NASDAQ

Key Insights:

• On Tuesday, XRP joined the broader crypto market in a bullish session, rising by 2.21% to end the day at $0.39535.
• Binance news and investor sentiment toward the SEC v Ripple case played second fiddle to the US CPI Report and the NASDAQ Index.
• The technical indicators turned more bullish, with XRP sitting above the 100-day EMA, supporting a return to $0.40.

On Tuesday, XRP rose by 2.21%. Following a 1.44% gain on Monday, XRP ended the day at $0.39535. XRP wrapped up the day at $0.39 for the first time in five sessions.

A bearish start to the day saw XRP fall to an early morning low of $0.37834. Steering clear of the First Major Support Level (S1) at $0.3754, XRP rallied to an early afternoon high of $0.39684. XRP broke through the First Major Resistance Level (R1) at $0.3939 before falling back to sub-$0.39 levels.

However, a bullish end saw XRP break back through R1 to end the day at $0.39535.

US CPI Report and the NASDAQ Index Took Center Stage

There were no updates from the ongoing SEC v Ripple case to distract investors from the US economic calendar.

The US CPI Report drove demand for XRP and the broader crypto market on Tuesday. Softer inflation figures supported the bets of a December Fed pivot and a less aggressive interest rate trajectory to bring inflation to target.

The bullish stats supported the NASDAQ Index and the S&P500, which saw gains of 1.01% and 0.73%, respectively.

However, the upside was limited, with XRP falling short of $0.40 as investors remained wary about the SEC v Ripple case. This week, Cardano founder Charles Hoskinson talked about rumors of a Thursday end to the SEC v Ripple case. While the source is unknown, the possibility of a conclusion to the case will likely test investors mid-week.

News updates on Binance failed to overshadow the hawkish CPI Report, though investors will need to continue monitoring the situation.

Today, the market will focus on the Federal Reserve, the FOMC economic projections, and the Fed Chair Powell press conference. A less hawkish outlook on interest rates, downward revisions to inflation forecasts, and a soft landing would support XRP and the broader crypto market.

We may see XRP trail the front-runners, however. The SEC v Ripple case remains the key driver.

XRP Price Action

At the time of writing, XRP was down 1.22% to $0.39052. A mixed start to the day saw XRP rise to an early high of $0.39531 before falling to a low of $0.38948.

Technical Indicators

XRP needs to avoid the $0.3902 pivot to target the First Major Resistance Level (R1) at $0.4020. A move through the Tuesday high of $0.39694 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4087. The Third Major Resistance Level (R3) sits at $0.4272.

A fall through the pivot would give the bears a run at the First Major Support Level (S1) at $0.3835. However, barring an extended sell-off, XRP should avoid sub-$0.3750 and the Second Major Support Level (S2) at $0.3717. The Third Major Support Level (S3) sits at $0.3532.

Without updates from the SEC v Ripple case and news of a Binance liquidity issue, XRP will likely sit in the hands of the Fed.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.38817. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A move through the 200-day EMA ($0.38817) would support a breakout from R1 ($0.4020) to bring R2 ($0.4087) into view. However, a fall through the 100-day EMA ($0.38817) and the 50-day EMA ($0.38661) would bring S1 ($0.3835) and sub-$0.38 into play.