XRP Eyes $0.50 on SEC v Ripple Optimism and US Debt Ceiling News
- On Saturday, XRP extended the winning streak to three sessions, rising by 0.71% to end the day at $0.47211.
- Sentiment toward the SEC v Ripple case and progress toward a US debt ceiling deal provided support.
- The technical indicators are bullish, signaling a return to $0.50.
On Saturday, XRP rose by 0.71%. Following the 3.32% rally from Friday, XRP ended the day at $0.47211. Significantly, XRP held onto the $0.47 handle for the first time in six sessions.
It was a choppy morning. XRP rose to an early morning high of $0.47883. XRP broke through the First Major Resistance Level (R1) at $0.4747 before falling to an early morning low of $0.46538. However, steering clear of the First Major Support Level (S1) at $0.4578, XRP found afternoon support to wrap up the day at $0.47211.
US Debt Ceiling News and Hopes of a Ripple Victory Delivered Support
It was a quiet start to the weekend. There were no SEC v Ripple case-related news updates to provide direction. The lack of updates left Ripple CEO Brad Garlinghouse’s comments from earlier this week to continue resonating.
Despite the investor optimism, sentiment toward the Fed weighed on investor sentiment throughout the morning. Increasing bets on a 25-basis point June interest rate hike tested buyer appetite.
However, reports of US President Joe Biden and Speaker of the House Kevin McCarthy reaching a deal to avert a US default delivered afternoon support.
The Day Ahead
It is a quiet Sunday session, with no Court rulings from the SEC v Ripple case for investors to consider over the long weekend. The quiet session should leave investors to continue responding to the US debt ceiling news.
XRP Price Action
At the time of writing, XRP was up 0.31% to $0.47356. A mixed start to the day saw XRP fall to an early low of $0.47022 before rising to a high of $0.47416.
XRP Technical Indicators
Resistance & Support Levels
|R1 – $||0.4788||S1 – $||0.4654|
|R2 – $||0.4856||S2 – $||0.4587|
|R3 – $||0.4990||S3 – $||0.4452|
XRP needs to avoid the $0.4721 pivot to target the First Major Resistance Level (R1) at $0.4788. A return to $0.4750 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 $0.4856 and resistance at $0.49. The Third Major Resistance Level (R3) sits at $0.4990.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4654 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.46 and the Second Major Support Level (S2) at $0.4587. The Third Major Support Level (S3) sits at $0.4452.
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 $0.46114. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA converging on the 200-day EMA. The EMAs delivered bullish signals.
A hold above S1 ($0.4654) and the 50-day EMA ($0.46114) would support a breakout from R1 ($0.4788) to target R2 ($0.4856) and $0.49. However, a fall through S1 ($0.4654) and the 50-day EMA ($0.46114) would bring S2 ($0.4587) and the 200-day ($0.45704) and 100-day ($0.45658) EMAs into view. A fall through the 50-day EMA ($0.46114) would send a bearish signal.