XRP Eyes $0.55 on SEC v Ripple News and US Debt Ceiling News

Key Insights:

• On Wednesday, XRP ended a six-day winning streak, falling by 0.92% to end the day at $0.51683.
• Market angst toward the US debt ceiling vote overshadowed investor optimism toward a Ripple victory in the ongoing SEC v Ripple case.
• However, the technical indicators remain bullish, signaling a return to $0.55.

On Wednesday, XRP fell by 0.91%. Partially reversing a 5.48% rally from Tuesday, XRP ended the day at $0.51683. Significantly, XRP ended a six-day winning streak while gaining 9.58% in May.

A bullish start to the day saw XRP rise to an early high of $0.52772. Falling short of the First Major Resistance Level (R1) at $0.5370, XRP fell to a late afternoon low of $0.50112. However, steering clear of the First Major Support Level (S1) at $0.4979, XRP retested resistance at $0.52 before easing back to end the day at $0.51683.

China PMIs and Angst Toward the Debt Ceiling Vote Weighed

It was a quiet Wednesday session. There were no SEC v Ripple case-related updates to provide direction. The lack of updates left XRP investor optimism about the outcome of the SEC v Ripple case to provide early support.

However, economic indicators from China and US debt-ceiling-related news weighed on XRP and the broader crypto market.

A deeper contraction in China’s manufacturing sector weighed on riskier assets, with investor apprehension ahead of the House of Representatives vote on the US debt ceiling deal adding to the market angst.

However, the Wednesday loss was modest as investors await the release of the infamous William Hinman speech-related documents.

The Day Ahead

It is a busy Thursday session. US economic indicators and the US debt ceiling vote will influence. Following a slide in bets on a Fed interest rate hike in June, ADP nonfarm employment and initial jobless claims figures could test the theory ahead of the US Jobs Report.

However, the outcome of the US debt ceiling vote would likely limit the impact of economic indicators from China and the US.

While the economic calendar and updates from Washington will influence, SEC v Ripple case updates should have more impact.

Investors must also track SEC activity and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was down 0.71% to $0.51315. A bearish start to the day saw XRP fall from an opening price of 0.51679 to a low of $0.51315.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to move through the $0.5152 pivot to target the First Major Resistance Level (R1) at $0.5293. A move through the Wednesday high of $0.52772 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 $0.5418 and resistance at $0.55. The Third Major Resistance Level (R3) sits at $0.5684.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5027 in play. However, barring a debt ceiling vote-fueled sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4886. The Third Major Support Level (S3) sits at $0.4620.

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 $0.48553. The 50-day EMA pulled further 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 the Major Support Levels and the 50-day EMA ($0.48553) would support a breakout from R1 ($0.5293) to target R2 ($0.5418) and $0.55. However, a fall through S1 ($0.5027) would bring S2 ($0.4886) and the 50-day EMA ($0.47553) into view. A fall through the 50-day EMA would send a bearish signal.