On Tuesday, XRP joined the broader crypto market in the red, falling 1.73% to end the session at $0.39142. Fed Fear weighed on riskier assets and dwarfed SEC v Ripple optimism. Technical indicators turned bearish, signaling a return to below $0.38.
On Tuesday, XRP fell 1.73%. Partially reversing a 3.17% rally on Monday, XRP ended the day at $0.39142. Despite the bearish session, XRP revisited the $0.40 level for the second time in five sessions.
A bullish start to the day saw XRP rally to a mid-morning high of $0.40222. Missing the first major resistance level (R1) at $0.4121, XRP slid to a late afternoon low of $0.38761. Moving away from the first major support level (S1) at $0.3810; however, XRP briefly revisited $0.3949 before pulling back.
Ripple Updates and SEC vs. Ripple Chatter Take a Back Seat to Fed Fear
It was a busy Tuesday session. After the US holidays, the US Private Sector PMI numbers for February generated interest in the afternoon session. A better-than-expected services PMI boosted bets on a more hawkish Fed rate path to bring inflation to target.
The NASDAQ Composite Index responded to the more hawkish outlook from the Fed, falling 2.50%.
Ripple news updates and SEC vs. Ripple chatter took a backseat, despite continued optimism towards the outcome of the SEC vs. Ripple case.
However, there were no SEC v Ripple case updates to sway buyer appetite.
XRP Price Action – Technical Indicators
XRP needs to move through the $0.3938 pivot to target the first major resistance level (R1) at $0.3999 and Tuesday’s high of $0.40222. A return to $0.40 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 another prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4084 and resistance at $0.41. The third main resistance level (R3) sits at $0.4230.
Failure to move through the pivot would leave the first major support level (S1) at $0.3853 up for grabs. However, barring an extended cryptocurrency sell-off, XRP should avoid going below $0.3750. The second major support level (S2) at $0.3791 should cap the downside. The third major support level (S3) sits at $0.3645.
The EMAs and the 4-hour candlestick sent a bearish signal. XRP was trading below the 200-day EMA, currently at $0.39119. The 50 day EMA has converged to the 200-day EMA, and the 100-day EMA has turned down to the 200-day EMA. The signals were bearish.
A bearish cross of the 50-day EMA through the 200-day would support a fall through S1 ($0.3853) to give the bears a run to support levels below $0.38. However, an XRP move through the EMAs would bring R1 ($0.3999) and the Tuesday high of $0.40222 into play. A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
