On Sunday, XRP fell 2.12% to end the day at $0.38609. A bearish crypto market session and SEC versus Ripple angst left XRP in negative territory. Technical indicators turned bearish, signaling a return to below $0.36.
On Sunday, XRP fell 2.12%. Following a 0.22% drop on Saturday, XRP ended the week up 2.98% at $0.38609. Despite the bearish session, XRP avoided levels below $0.38 for the fourth session in a row.
After a choppy morning session, XRP rallied to a late afternoon high of $0.39760 before pulling back. Facing the first major resistance level (R1) at $0.3974, XRP slid to a late low of $0.38521. XRP fell through the first major support level (S1) at $0.3915, and the second major support level (S2) at $0.3885, to end the day at $0.38609.
Regulatory Risk and SEC v Ripple Weighted Uncertainty
On Sunday, there were no updates on the ongoing SEC versus Ripple case to sway investor sentiment. The continued silence from the courts left XRP in the hands of the broader crypto market and the SEC versus Ripple talk.
While investors remain hopeful of a positive outcome for the case, increased regulatory scrutiny of the digital asset space has tested buyers’ appetites. XRP has been seen struggling during periods of heightened regulatory activity, which will likely continue as markets await rulings in the SEC vs. Ripple case.
With no regulatory framework in sight, the US crypto market will remain at the mercy of US regulators and a Securities and Exchange Commission trying to regulate through the app.
XRP Price Action – Technical Indicators
With the US markets closed, there are no external market forces guiding investors today. However, the crypto news wires will continue to provide guidance. Investors should continue to monitor news and talk from Binance, FTX, Genesis, and Silvergate Bank related to the SEC vs. Ripple case.
XRP needs to move through the $0.3896 pivot to target the first major resistance level (R1) at $0.3941 and the Sunday high of $0.3976. A return to $0.39 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 $0.4020. The third main resistance level (R3) sits at $0.4144.
XRP was trading below the 50-day EMA, currently at $0.38980. The 50-day EMA pulled back from the 200-day EMA, and the 100-day EMA turned down to the 200-day EMA. The signals were bearish.
A bearish cross from the 100-day EMA through the 200-day EMA would support another dip through S1 ($0.3817) for S2 ($0.3772) to come back into play. However, a move through the 50-day EMA ($0.38980) would support a break of the 200-day EMA ($0.39075) and 100-day EMA ($0.39124) to give bulls a run at R1 ($0.3941). A move through the 50-day EMA would send a bullish signal.
By Audy Castaneda
