On Friday, XRP saw a second straight day in the red, falling 0.02% to end the day at $0.37115. Troubles in the US banking sector weighed on investor sentiment, overshadowing the renewed optimism of the SEC vs. Ripple. Technical indicators remained bearish, indicating a return to below $0.35.
On Friday, XRP fell 0.02%. Following a 4.57% drop on Thursday, XRP ended the day at $0.37115. Significantly, XRP visited below $0.36 for the first time in four sessions.
A mixed start to the day saw XRP rally to an early high of $0.37468 before pulling back. Missing the first major resistance level (R1) at $0.3908, XRP fell to a late-morning low of $0.35744. However, finding support at the first major support level (S1) at $0.3580, XRP revisited the $0.373 level before falling back into the red.
Hopes of a Ripple Victory in the Case SEC vs. Ripple Delivered support
It was another quiet session on Friday, with no updates on the SEC vs. Ripple to distract investors from cryptocurrency news and the US economic calendar.
Amid heightened regulatory and legislative scrutiny, US banking problems fueled fears of contagion. News of the closure of SVB Financial Group (SIVB) by US regulators dampened investor appetite for riskier assets.
The all-important US Jobs Report also tested investor confidence. Better-than-expected nonfarm payroll numbers boosted bets for a more hawkish Fed policy outlook. However, softer wage growth and an unexpected rise in unemployment limited the damage.
Despite the gloomy session, XRP ended the day relatively flat. Hopes of a Ripple victory in the SEC vs. Ripple continued to provide support. XRP bucks the broader crypto market trend this week. Currently, XRP is up 1.03%, while the crypto market cap is down 7.2%.
Midweek court rulings on expert testimony tipped the scales in Ripple’s favor. In a series of rulings, denying and granting motions by both parties, the Court decided to exclude SEC expert testimony on the “reasonable expectations of an XRP buyer.”
Investors should continue to monitor Binance and FTX news as regulators scrutinize the digital asset space. Regulatory activity and legislator chatter are the focal points. However, updates to the SEC vs. Ripple will continue to be the key factor.
XRP Price Action – Technical Indicators
A mixed start to the day saw XRP fall to an early low of $0.36976, before rising to a high of $0.37718.
XRP needs to avoid the $0.3678 pivot to target the first major resistance level (R1) at $0.3781. A move through the morning high of $0.37718 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 $0.3850, and resistance at $0.39. The third main resistance level (R3) sits at $0.4022.
The 50-day EMA turned back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.
A move through the 50-day EMA ($0.37662) would support a break of R1 ($0.3781) and the 100-day EMA ($0.37876) to reveal the 200-day EMA ($0.38223). However, a failure to move through the 50-day EMA ($0.37662) would leave S1 ($0.3608) in play.
By Audy Castaneda
