It is another quiet day for XRP, with no Court rulings likely to impact. However, US lawmaker activity has drawn interest ahead of a June 6 hearing.
On Saturday, XRP fell by 1.19%. Partially reversing a 3.68% gain from Friday, XRP ended the day at $0.51894. Significantly, XRP avoided sub-$0.51 for the first time since April 16.
After a mixed start to the day, XRP rose to a mid-morning high of $0.53304. Falling short of the First Major Resistance Level (R1) at $0.5338, XRP fell to a late afternoon low of $0.51450. However, steering clear of the First Major Support Level (S1) at $0.5102, XRP revisited the $0.52 handle before ending the day at $0.51894.
It was a quiet Saturday session, with no SEC v Ripple case-related updates to draw interest. The lack of news from the Courts left XRP in the hands of the broader crypto market.
Following the US Senate vote on the Debt Limit Suspension Bill and US Jobs Report-fueled gains, profit-taking likely left XRP in the red.
While it is a quieter week ahead on the economic calendar, US ISM Non-Manufacturing PMI numbers and economic indicators from China will be focal points. The stats will impact market risk sentiment and influence the Fed’s monetary policy outlook.
Positive sentiment toward the Digital Asset Market Structure Draft Bill failed to deliver another bullish session. SEC Chair Gary Gensler and CFTC Chairman Rostin Behnam have yet to comment on the Draft Bill that distributes the responsibility to regulate the digital asset space between the SEC and the CFTC.
It is a quiet Sunday session, with no updates from the Courts for investors to consider. However, investors should monitor the crypto news wires for SEC v Ripple chatter, SEC activity, and Binance and Coinbase (COIN)-related news.
We expect the SEC and CFT Chairs to respond before the June 6 House Committee on Agriculture hearing, “The Future of Digital Assets: Providing Clarity of Digital Asset Spot Markets.”
At the time of writing, XRP was down 0.14% to $0.51820. A mixed start to the day saw XRP rise to an early high of $0.51906 before falling to a low of $0.51558.
Resistance & Support Levels
R1 – $ | 0.5298 | S1 – $ | 0.5113 |
R2 – $ | 0.5407 | S2 – $ | 0.5036 |
R3 – $ | 0.5592 | S3 – $ | 0.4851 |
XRP needs to move through the $0.5222 pivot to target the First Major Resistance Level (R1) at $0.5298 and the Saturday high of $0.53304. A return to $0.5250 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 $0.5407 and resistance at $0.55. The Third Major Resistance Level (R3) sits at $0.5592.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5113 in play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.50. The Second Major Support Level (S2) at $0.5036 should limit the downside. The Third Major Support Level (S3) sits at $0.4851.
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 $0.50180. The 50-day EMA pulled further 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 Major Support Levels and the 50-day EMA ($0.50180) would support a breakout from R1 ($0.5298) to target R2 ($0.5407) and $0.55. However, a fall through S1 ($0.5113) would bring S2 ($0.5036) and the 50-day EMA ($0.50180) into view. A fall through the 50-day EMA would send a bearish signal.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.