On Tuesday, XRP joined the broader market in positive territory, rising 0.08% to end the day at $0.3738. Contagion risk reduction from Silicon Valley Bank and Signature Bank and US inflation figures provided support. However, technical indicators remained bearish, signaling a return to below $0.35.

On Tuesday, XRP rose 0.08%. Following a 0.11% loss on Monday, XRP ended the day at $0.37380. Significantly, XRP avoided levels below $0.36 for the first time in three sessions.

A choppy start to the day saw XRP drop to a mid-morning low of $0.36677. Pulling away from the first major support level (S1) at $0.3600, XRP rallied to a mid-afternoon high of $0.38805. XRP broke above the first major resistance level (R1) at $0.3842 before pulling back to end the day below $0.38 for the sixth straight session.

US Economic Indicators and BLS Infection Decrease Provide Support

There were no updates on the SEC vs. Ripple to provide XRP price direction on Tuesday. The lack of news from the Courts left XRP in the hands of the US economic calendar.

However, talks related to the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY) were also influential.

On Monday, US President Joe Biden reportedly said the following:

“Americans can rest assured that our banking system is secure. Your deposits are safe. Let me also assure you that we will not dwell on this. We will do whatever it takes on top of all this.”

While Biden’s words provided support, the US CPI Report sent XRP to a session high. In February, the annual inflation rate moderated from 6.4% to 6.0%, in line with expectations. The softer headline number supported a less aggressive Fed rate path to bring inflation to target.

XRP jumped 2.02% to $0.37578 in the first 30 minutes of the report.

Economic indicators from China and the US will influence investor appetite today. Overnight, the US CPI Report supported a 25 basis point Fed rate hike in March. Softer inflation and upbeat US consumer numbers are a bullish combination for riskier assets.

XRP Price Action – Technical Indicators

XRP was down 0.39% at $0.37236. A mixed start to the day saw XRP rally to an early high of $0.37388, before falling to a low of $0.37019.

XRP needs to move through the $0.3738 pivot to target the first major resistance level (R1) at $0.3856, and Tuesday’s high of $0.38805. A return to $0.38 would signal a bullish session. However, the broader crypto market and SEC vs. Ripple talk would need to support a breakout.

In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.3975, and resistance at $0.40. The third main resistance level (R3) sits at $0.4188.

The 50-day EMA turned back from the 100-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 ($0.37254) would support a break of the 100-day EMA ($0.37519) to give the bulls a run to the 200-day EMA ($0.37951) and R1 ($0.3856). However, a failure to move through the 50-day EMA ($0.37254) would leave S1 ($0.3644) in play.

By Audy Castaneda


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