XRP and a Return to $0.40 in the Hands of Washington and Judge Torres

The Day Ahead

It is a quiet day ahead for XRP. There are no US economic indicators for investors to consider. However, US debt ceiling-related news and SEC v Ripple case-related chatter will move the dial.

Investors should also monitor SEC activity and Binance and Coinbase (COIN)-related news.

With a banking sector crisis brewing and the US government failing to raise the debt ceiling, regulators and lawmakers may target the digital asset space to change the narrative.

XRP Price Action

At the time of writing, XRP was down 0.36% to $0.42286. A mixed start to the day saw XRP rise to an early high of $0.42500 before falling to a low of $0.42154.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to move through the $0.4261 pivot to target the First Major Resistance Level (R1) at $0.4286 and the Saturday high of $0.43032. A return to $0.43 would signal a bullish session. However, SEC v Ripple chatter and the US debt ceiling must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4329 and resistance at $0.4350. The Third Major Resistance Level (R3) sits at $0.4397.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4218 in play. However, barring another crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.4150. The Second Major Support Level (S2) at $0.4193 should limit the downside. The Third Major Support Level (S3) sits at $0.4125.

The EMAs and the 4-hourly candlestick chart (below) sent bearish signals.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.43417. The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA. The EMAs delivered bearish signals.

A move through R1 ($0.4286) would support a breakout from R2 ($0.4329) to give the bulls a run at the 50-day EMA ($0.43417). However, failure to move through the 50-day EMA ($0.43417) would leave S1 ($0.4218) and sub-$0.42 Major Support Levels in view. A move through the 50-day EMA would send a bullish signal.