XRP Bulls to Target $0.40 on a Deepening Global Banking Crisis

The Day Ahead

Investors should continue to monitor the news wires for banking sector-related news and SEC v Ripple updates.

However, investors should also continue tracking news related to Binance and FTX, with regulatory activity and lawmaker chatter likely to move the dial. This weekend, lawmakers and regulators have yet to return their attention to the crypto market as the banking crisis deepens.

A UBS-Credit Suisse deal should ease market tensions and uncertainty ahead of the Fed interest rate decision. In the final hour, the NASDAQ mini will give investors a sense of how the week could unfold.

XRP Price Action

At the time of writing, XRP was up 0.76% to $0.37731. A mixed start to the day saw XRP fall to an early low of $0.37392 before rising to a high of $0.37827.

Technical Indicators

XRP needs to move through the $0.3784 pivot to target the First Major Resistance Level (R1) at $0.3865 and the Saturday high of $0.39041. A return to $0.3850 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3984 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4185.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3665 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.36 and the Second Major Support Level (S2) at $0.3584. The Third Major Support Level (S3) sits at $0.3384.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.37421. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bullish signals.

A move through the 200-day EMA ($0.37795) would support a breakout from R1 ($0.3865) to target R2 ($0.3984) and $0.40. However, a fall through the 100-day ($0.37421) and 50-day ($0.37305) EMAs would bring S1 ($0.3655) into play. A fall through the 50-day EMA would send a bearish signal.