XRP Return to $0.53 Would Bring $0.55 into View on SEC v Ripple Optimism
- On Friday, XRP joined the broader crypto market in positive territory, rising by 3.68% to end the day at $0.52518.
- A lack of SEC v Ripple case updates left XRP in the hands of the broader crypto market.
- The technical indicators remain bullish, signaling a return to $0.55.
On Friday, XRP rose by 3.68%. Reversing a 1.99% loss from Thursday, XRP ended the day at $0.52518. Significantly, XRP wrapped up the day at $0.52 for the first time in three sessions.
A bearish start to the day saw XRP fall to a first-hour low of $0.50393. Steering clear of the First Major Support Level (S1) at $0.5000, XRP rose to an early evening high of $0.52753. XRP broke through the First Major Resistance Level (R1) at $0.5149 and the Second Major Resistance Level (R2) at $0.5233 to end the day at $0.52518.
SEC v Ripple Silence Left XRP in the Hands of the Crypto Market
It was a quiet Friday session. There were no SEC v Ripple case-related updates to influence. The lack of news from the Courts left XRP in the hands of the broader crypto market.
The passing of the Debt Limit Suspension Bill, US economic indicators, and sentiment toward Fed monetary policy drove demand for riskier assets on Friday.
While there was no SEC or CFTC activity to distract investors, the crypto community responded positively to the release of a Digital Asset Market Structure Proposal to categorize cryptos as securities and commodities to assign clear boundaries for the CFTC and the SEC to regulate the digital asset space.
Chairman of the Financial Services Committee Patrick McHenry had this to say,
“This discussion draft is the first step toward delivering on Republicans’ commitment to develop clear rules of the road for the digital asset ecosystem.”
The Day Ahead
It is a quiet Saturday session, with no updates from the Courts for investors to consider. The lack of updates will leave SEC v Ripple chatter, SEC activity, and Binance and Coinbase (COIN)-related news to influence.
XRP Price Action
At the time of writing, XRP was down 0.60% to $0.52201. A mixed start to the day saw XRP rise to an early high of $0.52484 before falling to a low of $0.51976.
Resistance & Support Levels
|R1 – $||0.5338||S1 – $||0.5102|
|R2 – $||0.5425||S2 – $||0.4953|
|R3 – $||0.5661||S3 – $||0.4717|
XRP needs to avoid the $0.5189 pivot to target the First Major Resistance Level (R1) at $0.5338. A move through the Friday high of $0.52753 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 $0.5425 and resistance at $0.55. The Third Major Resistance Level (R3) sits at $0.5661.
A fall through the pivot would bring the First Major Support Level (S1) at $0.5102 into play. However, barring a crypto event-fueled sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4953. The Third Major Support Level (S3) sits at $0.4717.
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 $0.49659. 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 S1 ($0.5102) and the 50-day EMA ($0.49659) would support a breakout from R1 ($0.5338) to target R2 ($0.5425) and $0.55. However, a fall through S1 ($0.5102) would bring the 50-day EMA ($0.49659) and S2 ($0.4953) into view. A fall through the 50-day EMA would send a bearish signal.