On Wednesday, XRP joined the broader crypto market in the red, falling 1.62% to end the day at $0.37729. The SEC vs. Ripple silence left US lawmakers and SEC Gary Gensler to leave the crypto market in the red. Technical indicators remained bearish, indicating a return to below $0.36.
On Thursday, XRP fell 1.62%. Partially reversing a 1.81% gain on Wednesday, XRP ended the day at $0.37729. Significantly, XRP ended the day below $0.38 for the sixth time in seven sessions.
A bullish start to the day saw XRP rally to an early morning high of $0.38458. Missing the first major resistance level (R1) at $0.3875, XRP slid to a late afternoon low of $0.37382. Moving away from the first major support level (S1) at $0.3763, however, XRP revisited the $0.38 level before falling back into the deep red.
It was another quiet session for XRP, with no SEC v Ripple case updates to guide investors on Thursday. The lack of updates left XRP in the hands of crypto news wires.
Increased Regulatory Scrutiny and from US Lawmakers Weighed on Investor Confidence.
On Thursday, SEC Chairman Gary Gensler took the opportunity to take aim at the crypto market during an SEC Investor Advisory Committee Meeting. The SEC chairman focused on custody issues and the mix of client assets and investor losses. US lawmakers added to the gloomy mood. A letter from US senators from both sides of the aisle to Binance drew a lot of interest.
Addressed to Binance CEO CZ, the US senators asked Binance to share “information on the growing concerns about finance, risk management, and regulatory compliance for Binance, Binance.US, and other related entities.”
The latest moves against the crypto market space brought further regulatory uncertainty. While investors may support regulation through enforcement, scrutiny from lawmakers would kill hopes that Capitol Hill will transfer regulatory powers to the CFTC.
XRP Price Action – Technical Indicators
XRP rose 0.03% to $0.37740. A mixed start to the day saw XRP fall to an initial low of $0.37666 before rising to a high of $0.37796.
XRP needs to move through the $0.3786 pivot to target the first major resistance level (R1) at $0.3833 and Thursday’s high of $0.38458. A return to $0.38 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 would likely test the second major resistance level (R2) at $0.3893 and resistance at $0.39. The third main resistance level (R3) sits at $0.4001.
A move of XRP through the 50-day EMA ($0.38082) would support a break of R1 ($0.3833) and the 100-day EMA ($0.38419) to bring the 200-day EMA ($0.38683) and R2 ($0.3893) into play. A move of XRP through the 50-day EMA ($0.38082) would send a bullish signal. However, a failure to move through the 50-day EMA ($0.38082) would leave major support levels in play.
By Audy Castaneda
