XRP Eyes a Return to $0.40 to Target $0.42 on Banking Sector News
Key Insights:
- On Sunday, XRP rose by 3.24% to end the day at $0.3866.
- XRP and the broader crypto market responded to news of UBS acquiring Credit Suisse Group to wrap up a bullish week.
- The technical indicators remained bullish, signaling a return to $0.42.
On Sunday, XRP rose by 3.24%. Reversing a 1.34% loss from Saturday, XRP ended the week up 3.39% to $0.38660. XRP revisited the $0.40 handle for the first time since March 8.
A mixed start to the day saw XRP fall to an early low of $0.37392 before making a move. Steering clear of the First Major Support Level (S1) at $0.3665, XRP rallied to an early afternoon high of $0.40107. XRP broke through the First Major Resistance Level (R1) at $0.3865 and briefly through the Second Major Resistance Level (R2) at $0.3984 before ending the day at $0.3866.
XRP Tracks Broader Crypto Market on UBS News
It was a quiet Sunday, with no updates from the ongoing SEC v Ripple case for investors to consider. While investors await rulings on the Hinman Documents and the Summary Judgment Reply Briefs, banking sector-related news remained the focal point.
On Sunday, news hit the wires of UBS AG (UBS) agreeing to acquire Credit Suisse Group AG (CS). The announcement drove demand for riskier assets, with XRP and the broader market making solid gains.
The upside came despite lingering contagion stemming from the collapse of Silicon Valley Bank and Signature Bank (SBNY).
With central banks looking to calm the markets, a shift in central bank monetary policy would deliver XRP and the broader crypto market further gains.
Having scrutinized the crypto market, regulators and lawmakers are now in the spotlight as calls for investigations into the collapse of two US banks echo on Capitol Hill. The likely level of scrutiny could give the crypto market a breather over the near term.
The Day Ahead
Central bank commentary will likely be an area of focus today. Following the UBS agreement to acquire Credit Suisse Group, central bankers will attempt to restore investor confidence and swiftly end the banking crisis.
However, investors should continue to monitor the crypto news wires. Regulators and lawmakers may want to deflect from the banking sector crisis and redirect attention to the digital asset space.
Nonetheless, rulings from the ongoing SEC v Ripple case would have more influence on investor sentiment.
XRP Price Action
At the time of writing, XRP was up 0.40% to $0.38815. A mixed start to the day saw XRP fall to an early low of $0.38501 before rising to a high of $0.38984.
Technical Indicators
XRP needs to avoid the $0.3872 pivot to target the First Major Resistance Level (R1) at $0.4005 and the Sunday high of $0.40107. A return to $0.40 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4143 and resistance at $0.42. The Third Major Resistance Level (R3) sits at $0.4415.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3733 into play. However, barring an extended crypto sell-off, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.36. The Third Major Support Level (S3) sits at $0.3329.
The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
At the time of writing, XRP sat above the 200-day EMA, currently at $0.37864. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bullish signals.
A hold above the 200-day EMA ($0.37864) would support a breakout from R1 ($0.4005) to target R2 ($0.4143) and $0.42. However, a fall through the 200-day ($0.37864) would bring the 50-day ($0.37660) and 100-day ($0.37596) EMAs and S1 ($0.3733) into play. A fall through the 50-day EMA would send a bearish signal.
