On Thursday, XRP joined the broader crypto market in a relief rally, rising 1.44%, to end the day at $0.36558. Assurances from the Swiss National Bank, as well as fear of the receding Fed, supported XRP and the broader crypto market. However, technical indicators remain bearish, indicating a return to below $0.35.
On Thursday, XRP rose 1.44%. Partially reversing a 3.59% drop on Wednesday, XRP ended the day at $0.36558. Significantly, XRP returned to levels below $0.36 for the fourth time in five sessions.
A bearish start to the day saw XRP drop to an early low of $0.35772. Moving away from the first major support level (S1) at $0.3525, XRP rallied to a high of 0.36774. Failing to reach the first major resistance level (R1) at $0.3728, XRP pulled back to end the day at $0.36558. XRP failed to reach the $0.37 level for the first time since January 10.
XRP Enjoys Support from BTC and NASDAQ on Reversal of Banking Crisis Fears
Thursday was another quiet day for XRP, with no updates on the SEC vs. Ripple case to sway investor sentiment. The lack of updates left XRP in the hands of the global financial and Bitcoin (BTC) markets.
Reversal in contagion risk from Silicon Valley Bank (SIVB) and Signature Bank (SBNY) fueled demand for riskier assets. Government and central bank guarantees of support and containment eased investor fears of another global financial crisis.
The easing of Fed fears added to the bullish mood, as US economic indicators did little to sway market bets in favor of a 50-basis point Fed rate hike.
On Thursday, the NASDAQ Composite Index rose 2.48%, and the Dow and S&P 500 posted gains of 1.17% and 1.76%, respectively. The NASDAQ mini is down 4.5 points this morning.
Away from the economic calendar, updates to the ongoing SEC vs. Ripple case will continue to be the key factor. Investors await decisions related to the Hinman Documents and Summary Judgment Response Briefs, among others.
However, investors should continue to monitor the crypto news wires, with Binance and FTX news, regulatory activity, and lawmaker talk focal points.
XRP Price Action – Technical Indicators
XRP rose 0.68% to $0.36805. A mixed start to the day saw XRP fall to an initial low of $0.36310 before rising to a high of $0.36832.
XRP needs to avoid the $0.3637 pivot to target the first major resistance level (R1) at $0.3696. A move through Thursday’s high of $0.36774 would indicate a bullish session. However, the broader crypto market and SEC vs. 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 $0.3737. The third main resistance level (R3) sits at $0.3837.
The 50-day EMA turned back from the 100-day EMA, and the 100-day EMA turned back from the 200-day EMA. The EMAs delivered bearish signals.
A move through R1 ($0.3696) and the 50-day EMA ($0.36988) would give the bulls a run to the 100-day EMA ($0.37315) and R2 ($0.3737). However, a failure to move through the 50-day EMA ($0.36988) would leave S1 ($0.3596) in play.
By Audy Castaneda