On Tuesday, XRP joined the broader market in the red, falling 0.53% to end the day at $0.37669. While Fed fear and regulatory activity weighed heavily, optimism toward the SEC vs. Ripple capped losses. However, technical indicators remained bearish, indicating a return to below $0.36.
On Tuesday, XRP fell 0.53%. Reversing a 0.20% gain on Monday, XRP ended February down 7.20% at $0.37669. XRP ended the day at less than $0.38 for the fifth session in a row.
A bearish start to the day saw XRP drop to an early morning low of $0.37197. XRP fell through the first major support level (S1) at $0.3731 before rising to a session high of $0.38227. Facing the first major resistance level (R1) at $0.3822, XRP pulled back to below $0.38 and entered the red.
There were no SEC v Ripple case updates to guide investors on Tuesday. The lack of updates left XRP in the hands of crypto news wires.
Following G20 updates on plans to introduce a global crypto regulatory framework, the SEC was back in the news. The news that the SEC issued a subpoena to Robinhood (HOOD) set off alarm bells. There were also rumors that Visa (V) and Mastercard (MA) reconsidered their crypto plans.
While the bearish news left the crypto market with heavy losses on Tuesday, optimism towards the SEC v Ripple case cushioned the downside.
The Day Ahead
Updates to the SEC vs. Ripple case remain key. However, the lack of updates would leave XRP in the hands of the broader crypto market. While investors should continue to monitor news related to Binance and FTX, SEC activity and talk from US lawmakers are expected to remain the focal point.
In the afternoon session, US economic indicators and Fed talk will also provide the NASDAQ Composite Index, as well as the broader direction of the crypto market. US ISM Manufacturing PMI figures will generate interest.
XRP Price Action – Technical Indicators
At the time of writing, XRP was down 0.39% to $0.37521. A bearish start to the day saw XRP fall from an early high of $0.37615 to a low of $0.37521.
XRP needs to move through the $0.3770 pivot to target the first major resistance level (R1) at $0.3820 and Tuesday’s high of $0.38227. 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 $0.3873 and resistance at $0.39. The third main resistance level (R3) sits at $0.3976.
A break of XRP from the 50-day EMA ($0.38176) and R1 ($0.3820) would give the bulls a run to the 100-day EMA ($0.38550) and R2 ($0.3873). A move of XRP through the 50-day EMA ($0.38176) would send a bullish signal. However, a failure to move through the 50-day EMA ($0.38176) would leave major support levels in play.
By Audy Castaneda
