XRP to Face a Choppy Session on SVB News and SEC v Ripple Silence

Key Insights:

• On Sunday, XRP joined the broader market in positive territory, rising by 2.01% to end the day at $0.37393.
• Silicon Valley Bank and Signature Bank news delivered support to riskier assets.
• The technical indicators remained bearish, signaling a return to sub-$0.35.

On Sunday, XRP rose by 2.01%. Reversing a 1.24% loss from Saturday, XRP ended the day at $0.37393. Despite the bullish session, XRP revisited sub-$0.36 for the second time in six sessions.

After a range-bound morning, XRP slid to a late afternoon low of $0.35182 before making a move. XRP fell through the First Major Support Level (S1) at $0.3593. However, finding support at the Second Major Support Level (S2) at $0.3520, XRP rallied to a final-hour high of $0.3740. Coming up short of the First Major Resistance Level (R1) at $0.3755, XRP eased back to end the day at $0.37393.

Silicon Valley Bank and US Regulators Deliver a Bullish Sunday Session

It was another quiet session on Sunday. There were no SEC v Ripple case updates to distract investors from the regulatory activity and the USD Coin (USDC) de-peg and re-peg.

Silicon Valley Bank (SIVB) and Signature Bank (SBNY) news drove demand for riskier assets.

On Sunday, US regulators announced that all customers would have access to their deposits from Monday. Additionally, the Federal Reserve created a new Bank Term Funding Program to offer loans with a maturity of one year to depository institutions. Institutions would pledge Treasuries and other held assets as security.

Regulators also shuttered Signature Bank, which faced similar problems, with regulators protecting all depositors.

USD Coin (USDC) also provided support, with the re-peg in process. On Saturday, Circle announced that it would use corporate funds to cover a $3.3 billion hole stemming from the collapse of SVB. News of regulators protecting depositors supported the re-pegging process.

On Sunday, Ripple CEO Brad Garlinghouse spoke about the platform’s banking relationship with SVB.

Brad Garlinghouse confirmed that Ripple has exposure to SVB as a banking partner. However, Garlinghouse assured the community that there would be no disruption to the day-to-day business, with Ripple holding most of its USD with a broader network of banking partners.

The Ripple CEO did take the opportunity to highlight the state of the US financial system, saying,

“It’s ironic that so much of what’s happening (as some companies scramble to make payroll) highlights how broken our financial systems still are – i.e., wires are still not 24/7/365, rumors lead to collapse, and the frictions of moving money within a deeply fragmented system.”

The Day Ahead

SEC v Ripple case updates will remain the key driver. Investors await rulings relating to the Hinman Documents and Summary Judgment Reply Briefs.

However, investors should continue monitoring Binance and FTX news, regulatory activity, and lawmaker chatter.

Following the moves to protect SVB and SBNY depositors, regulators and lawmakers may return their attention to the digital asset space.

There are no US economic indicators to draw interest this afternoon. A lack of SEC v Ripple news or regulatory activity would leave the NASDAQ Composite Index to influence the afternoon session.

XRP Price Action

At the time of writing, XRP was down 1.05% to $0.37000. A mixed start to the day saw XRP rise to an early high of $0.37922 before falling to a low of $0.37000.

XRP Technical Indicators

XRP needs to avoid the $0.3666 pivot to target the First Major Resistance Level (R1) at $0.3813. A move through the morning high of $0.37922 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 $0.3888 and resistance at $0.39. The Third Major Resistance Level (R3) sits at $0.4109.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3592 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3444. The Third Major Support Level (S3) sits at $0.3222.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.37222. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA. The EMAs delivered mixed signals.

A move through the 50-day EMA ($0.37222) would support a breakout from the 100-day EMA ($0.37582) to give the bulls a run at the 200-day EMA ($0.38037) and R1 ($0.3813). However, failure to move through the 50-day EMA ($0.37222) would leave S1 ($0.3529) in play.