On Friday, XRP rose 3.83%, to end the day at $0.37967. Investor demand for safe havens supported a de-pegging of the NASDAQ Composite Index, amid a simmering crisis in the US banking sector. Technical indicators turned bullish, signaling a return to $0.40.
On Friday, XRP rose 3.83%. Following a 1.44% gain on Thursday, XRP ended the day at $0.37957. Significantly, XRP revisited the $0.38 handle for the first time in three sessions.
A bearish start to the day saw XRP drop to an early low of $0.36310. Moving away from the first major support level (S1) at $0.3596, XRP rallied to an early afternoon high of 0.38283. XRP broke above the first major resistance level (R1) at $0.3696 and the second major resistance level (R2) at $0.3737 to end the day at $0.37957.
XRP Enjoys BTC Support as Banking Crisis Fears Reignite
There were no updates on the ongoing case SEC vs. Ripple for investors to consider. As investors await rulings on the Hinman Documents and Summary Judgment Response Reports, the crisis in the US banking sector boosted demand for Bitcoin (BTC) and the broader crypto market.
BTC surged 9.14%, as investors responded to the news that SV Financial Group (SIVB) filed for bankruptcy, Fed bailouts exceeded levels seen during the global financial crisis, and 11 banks bailed out First Republic Bank.
The NASDAQ Composite Index fell 0.74%, and the Dow and S&P 500 posted losses of 1.19% and 1.10%, respectively. By contrast, the total crypto market capitalization increased by 7.32% ($77.35 billion) to $1.134 billion.
Investors should monitor news wires for banking-related news and SEC vs. Ripple. However, they should also continue to track news related to Binance and FTX, with regulatory activity and talk from lawmakers likely to move the dial.
XRP Price Action – Technical Indicators
XRP rose 0.76% to $0.38245. A mixed start to the day saw XRP fall to an early low of $0.37770, before rising to a high of $0.39041. XRP briefly broke the first major resistance level (R1) at $0.3872.
XRP needs to avoid the $0.3752 pivot in order to retarget the first major resistance level (R1) at $0.3872, and the morning high of $0.39041. A return to $0.39 would signal 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 $0.3949, and resistance at $0.40. The third main resistance level (R3) sits at $0.4146.
The 50-day EMA reached down towards the 100-day EMA, and the 100-day EMA turned down to the 200-day EMA. The EMAs delivered bullish signals.
A hold above the 200-day EMA ($0.37784) would support a break from R1 ($0.3872) to the target of R2 ($0.3949) and $0.40. However, a drop through the 200-day EMA ($0.37784) would bring the 100-day EMA ($0.37350) and 50-day EMA ($0.37125) into play. A drop through the 50-day EMA would send a bearish signal, and it would give the bears a run at the major support levels.
By Audy Castaneda