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XRP Return to $0.55 Hinged on SEC v Ripple and SEC v Binance News

By:
Bob Mason
Published: Jun 6, 2023, 02:28 GMT+00:00

It is a quiet day for XRP. However, regulatory and lawmaker chatter will move the dial. A hearing on digital assets will move the dial this afternoon.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Monday, XRP slid by 4.79% to end the day at $0.50917.
  • News of the SEC suing Binance, CEO CZ, and Binance US overshadowed hopes of a Ripple win in the SEC v Ripple case.
  • However, the technical indicators remained bullish, suggesting a rebound.

On Monday, XRP slid by 4.79%. Reversing a 3.06% gain from Sunday, XRP ended the day at $0.50917. Significantly, XRP revisited sub-$0.50 for the first time in six sessions.

A bullish start to the day saw BTC rise to a first-hour high of $0.54288 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.5490, XRP fell to a late afternoon low of $0.48750. XRP fell through the First Major Support Level (S1) at $0.5181 and briefly through the Second Major Support Level (S2) at $0.5014 before ending the day at $0.50917.

XRP Joins Broader Market in the Red on SEC v Binance News

There was no SEC v Ripple case-related news for investors to consider, leaving the crypto new wires and US economic indicators to move the dial.

US ISM Non-Manufacturing PMI numbers eased bets on a June Fed interest rate hike, providing brief relief. However, the news of the SEC suing Binance sent XRP and the broader crypto market into the red.

The SEC v Binance case comes as the SEC v Ripple case reaches its pivotal moment. On June 13, the SEC must release the William Hinman speech-related documents that could influence the direction of the case.

With lawmakers pushing for regulatory reform, the speech-related documents could also impact the SEC’s hopes of ruling the digital asset space.

The Day Ahead

There are no US economic indicators for investors to consider today. The lack of economic indicators will leave XRP in the hands of the crypto news wires.

US lawmakers will be in the spotlight this afternoon. After releasing the Digital Asset Market Structure Draft Bill, the US Committee on Agriculture will hold a hearing today focusing on the spot trading of digital assets. Plans to shift regulatory oversight responsibilities to the CFTC would be crypto-positive.

However, SEC v Ripple-related news will remain the key driver. Nonetheless, we expect SEC v Binance chatter, SEC activity, and Coinbase (COIN) news to move the dial.

XRP Price Action

At the time of writing, XRP was up 0.06% to $0.50946. A mixed start to the day saw XRP to an early low of $0.50783 before rising to a high of $0.51160.

XRP finds early support.
XRPUSD 060623 Daily Chart

Technical Indicators

Resistance & Support Levels

R1 – $ 0.5389 S1 – $ 0.4835
R2 – $ 0.5686 S2 – $ 0.4578
R3 – $ 0.6239 S3 – $ 0.4024

XRP needs to move through the $0.5132 pivot to target the First Major Resistance Level (R1) at $0.5389. A return to $0.5350 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 $0.5686. The Third Major Resistance Level (R3) sits at $0.6239.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4835 in play. However, barring another event-fueled sell-off, XRP should avoid sub-$0.48 and the Second Major Support Level (S2) at $0.4578. The Third Major Support Level (S3) sits at $0.4024.

XRP support levels in play below the pivot.
XRPUSD 060623 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.50980. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A move through the 50-day EMA ($0.50980) would support a breakout from R1 ($0.5389) to target R2 ($0.5686). However, a fall through the 100-day EMA ($0.49387) would bring S1 ($0.4835) and the 200-day EMA ($0.47961) into view. A move through the 50-day EMA would send a bullish signal.

EMAs remain bullish.
XRPUSD 060623 4 Hourly Chart

About the Author

Bob Masonauthor

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.

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