XRP Target Remains $0.40 as Ripple Expansion Plan News Hits the Wires

Key Insights:

• On Friday, XRP joined the broader market in positive territory though the upside was modest.
• A quiet crypto session with falling volumes left XRP flat for the day, while optimism towards the SEC v Ripple case cushioned the downside
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.35.

On Friday, XRP rose by 0.10%. Following a 1.78% gain on Thursday, XRP ended the day at $0.38251. Notably, XRP avoided sub-$0.37 for the first time in eleven sessions.

A bullish start to the day saw XRP rise to an early morning high of $0.38696. However, coming up short of the First Major Resistance Level (R1) at $0.3896, XRP fell to a late afternoon low of $0.3743. Steering clear of the First Major Support Level (S1) at $0.3719, XRP found late support to wrap up the day at $0.38251.

Ripple network updates drew more attention on Friday, delivering price support. However, investor optimism toward the outcome of the SEC v Ripple case remained the key driver.

Ripple Targets Europe While the SEC Impacts Innovation in the US

Ripple grabbed the crypto new headlines for the right reasons this week, while the markets continued to digest FTX news for the wrong reasons.

On Friday, the Wall Street Journal reported former FTX CEO Sam Bankman-Fried cashing out $300 million in a 2021 fundraising campaign that included the Singapore Government’s investment fund, Temasek. FTX raised $420 million in the October fundraiser, which covered the sale of some of his stake in FTX.

In contrast, Ripple continued to expand beyond the US borders. On Friday, Ripple defense counsel Stuart Alderoty shared a tweet from Ryan Browne, saying,

“As we discussed, FTX’s bankruptcy is a call to action for responsible economic centers around the world to work to get regulatory frameworks right.”

Alderoty shared Ryan Browne’s tweet, which said,

“Despite the crypto bear market, Ripple is doubling down on Europe, seeking a VASP license in Ireland so it can passport its services across the EU.”

Browne added,

“After a lawsuit from the SEC, “effectively, Ripple is operating outside of the US,” Alderoty told me.”

News of Ripple’s expansion plans in Europe followed positive product news this week.

While the SEC v Ripple case delivers a degree of uncertainty, Ripple continues to find success in other jurisdictions that drives XRP adoption.

XRP Price Action

At the time of writing, XRP was down 0.95% to $0.37887. A mixed start to the day saw XRP rise to an early high of $0.38249 before falling to a low of $0.37745.

Technical Indicators

XRP needs to move through the $0.3813 pivot to target the First Major Resistance Level (R1) at $0.3882 and $0.39. A move through the Friday high of $0.38696 would signal a bullish session. However, contagion and the SEC v Ripple case need consideration.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.3939 and $0.40. The Third Major Resistance Level (R3) sits at $0.4066.

Failure to move through the pivot would leave the First Major Support Level (S2) at $0.3756 into play. However, barring another extended sell-off, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3686. The Third Major Support Level (S3) sits at $0.3559.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.38164. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.38164) would support a breakout from R1 ($0.3882) to target R2 ($0.3939) and the 100-day EMA ($0.39988). However, failure to move through the 50-day EMA ($0.38164) would give the bears a run at S1 ($0.3756) and sub-$0.37. The 200-day EMA sits at $0.42093.