XRP Target Remains Sub-$0.40 on US Anti-Crypto Activity

Key Insights:

• On Friday, XRP joined the broader crypto market in positive territory, gaining 2.25% to end the day at $0.43058.
• The US debt ceiling crisis and disappointing consumer sentiment numbers failed to overshadow positive sentiment toward Ripple.
• However, the technical indicators remain bearish, signaling a return to $0.40.

On Friday, XRP gained 2.25%. Reversing a 2.19% loss from Thursday, XRP ended the day at $0.43058. Despite the bullish session, XRP revisited sub-$0.42 for the third consecutive session.

After a mixed start to the day, XRP surged to a mid-morning high of $0.44370. XRP broke through the First Major Resistance Level (R1) at $0.4306 and the Second Major Resistance Level (R2) at $0.4400 before hitting reverse. The reversal saw XRP fall to an early evening low of $0.41616. However, steering clear of the First Major Support Level (S1) at $0.4118, XRP bounced back to end the day at $0.43058.

The US Debt Ceiling Crisis Fails to Overshadow Dubai Praises

It was yet another quiet day for the XRP Community, with no SEC v Ripple case updates to influence. However, the lack of Court rulings failed to deliver an XRP return to sub-$0.40.

Investors shifted their attention from the ongoing US debt ceiling crisis to chatter from the United Arab Emirates. On Thursday, the Dubai Media Office lauded the Ripple platform, saying,

“Ripple, the leader in enterprise blockchain and crypto solutions, is expanding its presence in Dubai with a new office in Dubai International Finance Centre (DIFC). Progressive regulations and a robust tech infrastructure have helped Dubai consolidate its status as a global capital of advanced technologies, attracting top companies like Ripple.”

The comments were in stark contrast to the US administration stance on the digital asset space.

The Ripple push beyond the borders of the US has gained traction, supporting XRP at current price levels.

However, the US debt ceiling crisis and a slump in US consumer confidence delivered a Friday session low of $0.41616 before the recovery to wrap up the session at $0.43058.

The Day Ahead

It is a quiet day ahead for XRP, with no US economic indicators for investors to consider. However, SEC v Ripple case-related chatter and US debt ceiling updates will influence.

SEC activity and Binance and Coinbase (COIN)-related news will also need consideration.

Ripple Chief Legal Office Stuart Alderoty had this to say about SEC Chair Gary Gensler,

“For this SEC Chair, the judicial process is a weapon to be wielded and Congressional oversight is a game of hide and seek. This isn’t a crypto problem, this is a ‘We the People’ problem.”

XRP Price Action

At the time of writing, XRP was down 0.90% to $0.42669. A bearish morning saw XRP fall from an opening price of $0.43032 to a low of $0.42594.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to move through the $0.4301 pivot to target the First Major Resistance Level (R1) at $0.4441. A return to $0.43 would signal a bullish session. However, SEC v Ripple chatter and the US debt ceiling must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4577. The Third Major Resistance Level (R3) sits at $0.4852.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4166 in play. However, barring another crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.40. The Second Major Support Level (S2) at $0.4026 should limit the downside. The Third Major Support Level (S3) sits at $0.3751.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.43619. The 50-day EMA eased back from the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The EMAs delivered bearish signals.

A move through the 50-day EMA ($0.43619) would support a breakout from R1 ($0.4441) to give the bulls a run at the 100-day EMA ($0.44862) and R2 ($0.4577). However, failure to move through the 50-day EMA ($0.43619) would leave S1 ($0.4166) and sub-$0.41 Major Support Levels in view. A move through the 50-day EMA ($0.43619) would send a bullish signal.