On Wednesday, XRP rose 1.81% to end the day at $0.38349. There were no updates on the ongoing case SEC vs. Ripple to influence, which left China’s economic indicators to offer a bullish session. However, technical indicators remained bearish, indicating a return to below $0.36.
On Wednesday, XRP rose 1.81%. Reversing a 0.53% loss on Tuesday, XRP ended the day at $0.38349. Significantly, XRP held the $0.38 level for the first time in six sessions.
A bearish start to the day saw XRP drop to an early morning low of $0.3730. Moving away from the first major support level (S1) at $0.3717, XRP rallied to a late-session high of $0.38421. XRP broke above the first main resistance level (R1) at $0.3820 to end the day at $0.38349.
There were no updates on the SEC vs. Ripple to guide investors on Wednesday. The lack of updates left XRP in the hands of the global economic calendar and crypto news wires.
While mixed crypto news weighed on investor sentiment, economic data from China supported a breakout session. The all-important Caixin manufacturing PMI rose from 49.2 to 51.6 versus 50.2 expected. Significantly, the manufacturing sector expanded for the first time since July 2022, fueling demand for riskier assets.
The Day Ahead
Updates on the SEC vs. Ripple are still key. Rulings related to the Hinman Documents would have a material impact on XRP price action. However, the lack of updates would leave XRP in the hands of the crypto news wires and the US economic calendar.
This afternoon, US Initial Jobless Claims and Unit Labor Costs will generate interest. A drop in jobless claims, a rise in unit labor costs, and hawkish talk from the Fed would all be bearish for the NASDAQ Composite Index and the broader crypto market.
Investors should continue to monitor news related to Binance and FTX, with SEC activity and talk from US lawmakers likely to remain the focal point.
Fed fear and regulatory risk jitters are headwinds that will continue to push XRP back from a sustainable breakout.
XRP Price Action – Technical Indicators
XRP needs to move through the $0.3802 pivot to target the first major resistance level (R1) at $0.3875. A return to $0.3850 would signal a bullish session. However, the broader crypto market and SEC v Ripple talk would need to support a breakout.
In the event of a prolonged rally, XRP is likely to test the second major resistance level (R2) at $0.3914 and resistance at $0.3950. The third main resistance level (R3) sits at $0.4027.
A move of XRP through the 50-day EMA ($0.38167) would support a breakout of the 100-day EMA ($0.38503) and R1 ($0.3875) to bring R2 ($0.38914) into play. A move of XRP through the 50-day EMA ($0.38167) would send a bullish signal. However, a failure to move through the 50-day EMA ($0.38167) would leave major support levels in play.
By Audy Castaneda
