On Thursday, XRP ended a five-day winning streak, falling 1.93%, to end the day at $0.53229. A bearish crypto market session fueled by SEC Chairman Gensler’s plans for the digital asset space led to the pullback. However, technical indicators are bullish, indicating a return to $0.60.
On Thursday, XRP fell 1.93%. Partially reversing a 5.60% gain on Wednesday, XRP ended the day at $0.53229. XRP saw the end of a five-day winning streak.
A mixed start to the day saw XRP fall to an early morning low of $0.52168. Moving away from the first major support level (S1) at $0.5096, XRP rallied to a late-morning high of $0.5573. However, failing to reach the first major resistance level (R1) at $0.5804, XRP fell back to below $0.53, before closing the day at $0.53229.
XRP Investors Put Down Intensified Regulatory Scrutiny
It was a quiet Thursday, with no updates on the ongoing SEC vs. Ripple case to influence investor sentiment. While there were no court rulings for investors to consider, the SEC was in the spotlight for the second session in a row.
Following news that Patrick McHenry asked SEC Chairman Gary Gensler to testify on Capitol Hill, news broke that SEC Chairman Gary Gensler has asked lawmakers to approve $2.4 billion in funding to strengthen regulation by enforcement approach to the digital asset space.
The news was bearish, with the broader crypto market also in the red. XRP’s pullback came despite the optimism of a Ripple victory in the SEC vs. Ripple case.
A Ripple victory will be even more vital, as the SEC looks to increase its regulatory capabilities. US lawmakers could cut the powers and funding of the SEC, and stop an exodus of crypto-related companies from the US to more crypto-friendly jurisdictions.
Questions related to the Howey test, disagreements with the CFTC on whether cryptocurrencies are securities or commodities, the failure to prevent the FTX collapse, and the case against Ripple would generate a lot of interest. Anti-SEC lawmakers might even go for the jugular and trot out the Hinman Documents.
So far, the SEC has failed to protect the documents from the public. However, since the hearing will take place on April 18, a lot can happen between now and the hearing.
XRP Price Action – Technical Indicators
XRP rose 0.04% to $0.53251. A choppy start to the day saw XRP fall to an initial low of $0.52870, before rising to a high of $0.53684.
XRP needs to move through the $0.5371 pivot to target the first major resistance level (R1) at $0.5525, and Thursday’s high of $0.5573. A return to $0.55 would signal another bullish session. However, the talk SEC vs. Ripple would need to admit a breakout.
In the event of another extended rally, XRP would likely test the second major resistance level (R2) at $0.5727, and resistance at the current week’s high of $0.58479. The third main resistance level (R3) sits at $0.6083.
XRP was above the 50-day EMA, currently at $0.48646. The 50-day EMA has broken further 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 major support levels and the 50-day EMA ($0.48646) would support a break of R1 ($0.5525) to the target of R2 ($0.5727). However, a drop-through S1 ($0.5169) would bring S2 ($0.5015) and the 50-day ($0.48646) into play. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
