On Wednesday, XRP fell 3.59% to end the day at $0.36038. A shift in focus from regional US banks to European banking giants sent XRP into the hot red. Technical indicators remain bearish, indicating a return to below $0.35.
On Wednesday, XRP fell 3.59%. Reversing a 0.08% gain on Tuesday, XRP ended the day at $0.36038. Significantly, XRP returned to levels below $0.36 for the third time in four sessions.
A choppy start to the day saw XRP rally to an early morning high of $0.37738. Missing the first major resistance level (R1) at $0.3856, XRP slid to a late afternoon low of $0.35712. XRP fell through the first major support level (S1) at $0.3644 to close the day at $0.36038.
SEC vs Ripple Radio Silence Leaves XRP in the Hands of Traditional Finance
Wednesday was another quiet day for XRP, with no updates from the SEC vs. Ripple case to provide XRP price direction. The lack of court rulings left XRP in the hands of the American economic calendar and the banking sector.
Following the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY), contagion fears resurfaced on Wednesday. Credit Suisse Group AG (CSGN) plunged 24.24% as investors responded to the bank’s largest shareholder by saying it would not provide further financial assistance.
The European stock market saw deep red, with XRP and the broader crypto market struggling throughout the session. Late in the afternoon, the Swiss National Bank eased fears of another banking collapse, providing late price support.
US economic indicators failed to move the dial despite supporting a 25 basis point Fed rate hike. Wholesale inflationary pressures eased, and February’s retail sales figures raised fears of a Federal Reserve-induced economic downturn.
XRP Price Action – Technical Indicators
A mixed start to the day saw XRP rally to an early high of $0.36157 before falling to a low of $0.35883.
XRP needs to move through the $0.3650 pivot to target the first major resistance level (R1) at $0.3728 and Wednesday’s high of $0.37738. A return to $0.37 would signal a bullish session. However, the broader crypto market and the SEC vs. Ripple would need to support a breakout.
In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.3852. The third main resistance level (R3) sits at $0.4055.
XRP was trading below the 50-day EMA, currently at $0.37088. 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 ($0.37088) would support a break of R1 ($0.3728) and the 100-day EMA ($0.37404), to give bulls a run to the 200-day EMA ($0.37867). and R2 ($0.3852). However, a failure to move through the 50-day EMA ($0.37088) would leave S1 ($0.3525) in play.
By Audy Castaneda