On Friday, XRP fell 4.20% to end the day at $0.42571. The problems of the European banking sector and the news related to Binance overshadowed the optimism towards a Ripple victory in the SEC vs. Ripple. However, technical indicators remain bullish, indicating a return to $0.50.
On Friday, XRP fell 4.20%. Partially reversing a 5.26% rally on Thursday, XRP ended the day at $0.42571. Despite the bearish session, XRP avoided sub-$0.41 for the second time since November 2022.
Trending down throughout the session, XRP slid from an opening price of $0.44452 to a late afternoon low of $0.41492. XRP briefly fell through the first major support level (S1) at $0.4196, before closing the day at $0.42571.
Binance and European Banking Sector Woes Overshadow Investor Optimism
There were no further updates on the ongoing SEC vs. Ripple case to sway investor sentiment on Friday.
Investors this week responded to a filing to support Ripple’s fair notice defense and a harsh response from the SEC, in which the SEC characterized Defendants as shameless.
Hopes of a Ripple victory failed to support prices. Midweek, the newly appointed President of Ripple Labs, Monica Long shared the market’s optimism of a Ripple win.
News of Binance employees helping users bypass KYC checks weighed on investor sentiment. The latest rumor could lead to increased US regulatory and legislative scrutiny, at a difficult time for the platform.
However, the news that Binance suspended deposits and withdrawals affected investor sentiment. A technical glitch forced Binance to suspend spot trading, as well as deposits and withdrawals. While services have resumed, XRP and the broader market remained in negative territory.
Banking news from Europe added to market angst, with Deutsche Bank (DB) becoming the latest to suffer at the hands of banking sector jitters.
XRP Price Action – Technical Indicators
A mixed start to the day saw XRP rally to an early high of $0.42656, before falling to a low of $0.42374.
XRP needs to move through the $0.4284 pivot, to target the first major resistance level (R1) at $0.4418, and Friday’s high of $0.44452. A return to $0.43 would signal a bullish session. However, the broader crypto market, as well as the SEC vs. Ripple, they would need to support a breakout.
In the event of another extended rally, XRP would likely test the second major resistance level (R2) at $0.4580. The third main resistance level (R3) sits at $0.4876.
The 50-day EMA has turned away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA. The EMAs delivered bullish signals.
A hold above the 50-day EMA ($0.41232) would support a break of R1 ($0.4418), to the target of R2 ($0.4580). However, a drop through the 50-day ($0.41232) and S1 ($0.4122) would bring S2 ($0.3988) and the 100-day EMA ($0.39846) into play. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda