XRP to Target Return to $0.40 on Ripple Cross-Border Product News
- On Thursday, bucked the top ten trend, rising by 1.78% to end the day at $0.38213.
- Investor optimism toward the SEC v Ripple case and product news delivered much-needed price support.
- The technical indicators are bearish, with XRP sitting at the 50-day EMA, signaling a return to sub-$0.35.
On Thursday, XRP rose by 1.78%. Partially reversing a 3.35% slide from Wednesday, XRP ended the day at $0.38213. Notably, XRP ended the day at sub-$0.40 for the ninth consecutive session.
A bullish start to the day saw XRP rise to an early morning high of $0.38671. However, coming up short of the First Major Resistance Level (R1) at $0.3902, XRP fell to a late morning low of $0.36900. Steering clear of the First Major Support Level (S1) at $0.3611, XRP found afternoon support to wrap up the day at $0.38213.
Investor optimism toward the outcome of the SEC v Ripple case continued to deliver XRP price support. However, Ripple news were the key to the bullish session, muting the negative sentiment towards the FTX collapse and rising contagion risk.
Optimism over the SEC v Ripple Case and Network News Mutes Contagion
Investor sentiment toward the outcome of the SEC v Ripple case provided much-needed support on Thursday. While there were no updates from the case, the latest batch of Amicus Brief filings showed XRP as a utility.
The investor optimism allowed the markets to respond to news relating to Ripple’s various payment products.
On Thursday, Australia’s Commonwealth Bank tweeted,
“Hi there. From November 2022 cross border payments will start to migrate to ISO 20022 with all payments to be made and received using ISO 20022 by November 2025. Cross-border payments will be greatly simplified as a result.”
The tweet led to investors linking CommBank with XRP, suggesting that the move to ISO 20022 involves Ripple, which already complies with ISO 20022. Israel’s Bank Leumi, Canada’s CIBC, and the National Australia Bank partnered in March to use Ripple blockchain technology.
This week, news of Stably launching Stably USD Stablecoin on the XRP ledger was also positive.
XRP Price Action
At the time of writing, XRP was up 0.54% to $0.38419. A mixed start to the day saw XRP fall to an early low of $0.38109 before rising to a high of $0.38696.
XRP needs to avoid the $0.3793 pivot to target the First Major Resistance Level (R1) at $0.3896 and $0.39. A move through the morning high of $0.38696 would signal a bullish session. However, FTX contagion risk 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 $0.3970 and $0.40. The Third Major Resistance Level (R3) sits at $0.4147.
A fall through the pivot would bring the First Major Support Level (S2) at $0.3719 into play. However, barring another extended sell-off, XRP should avoid sub-$0.3650 and the Second Major Support Level (S2) at $0.3616. The Third Major Support Level (S3) sits at $0.3439.
The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
At the time of writing, XRP sat below the 100-day EMA, currently at $0.40244. The 50-day EMA narrowed the 100-day EMA, while the 100-day EMA fell back from the 200-day EMA. The signals were mixed.
A move through R1 ($0.3896) would bring R2 ($0.3970) and the 100-day EMA ($0.40244) into play. However, a fall through the 50-day EMA ($0.38213) would give the bears a run at S1 ($0.3719) and sub-$0.37. The 200-day EMA sits at $0.42348.