Key ideas:
- On Friday, XRP joined the broader crypto market in positive territory, gaining 2.25% to end the day at $0.43058.
- The US debt ceiling crisis and disappointing consumer confidence numbers failed to eclipse the positive sentiment towards Ripple.
- However, technical indicators remain bearish, indicating a return to $0.40.
On Friday, XRP earned 2.25%. Reversing a 2.19% loss from Thursday, XRP ended the day at $0.43058. Despite the bullish session, XRP revised below $0.42 for the third session in a row.
After a mixed start to the day, XRP rose to a mid-morning high of $0.44370. XRP broke above the first major resistance level (R1) at $0.4306 and the second major resistance level (R2) at $0.4400 before pulling back. The reversal sent XRP to a low of $0.41616 in the early afternoon. However, pulling away from the first major support level (S1) at $0.4118, XRP rallied to end the day at $0.43058.
US debt ceiling crisis fails to outshine praise from Dubai
It was another quiet day for the XRP community, with no SEC vs. Ripple case updates to influence. However, the lack of court rulings did not keep XRP's yield below $0.40.
Investors turned their attention from the ongoing US debt ceiling crisis to the talk of the United Arab Emirates. On Thursday, the Dubai Media Office praised the Ripple platform, saying,
โRipple, the leader in enterprise blockchain and crypto solutions, is expanding its presence in Dubai with a new office at the Dubai International Financial Center (DIFC). Progressive regulations and a strong technology infrastructure have helped Dubai cement its status as the world capital of advanced technologies, attracting leading companies like Ripple.โ
The comments were in stark contrast to the US administration's stance in the digital asset space.
Ripple's momentum beyond the US borders has gained traction, supporting XRP at current price levels.
However, the US debt ceiling crisis and the fall in US consumer confidence delivered a Friday session low of $0.41616 before the rally to close the session at $0.43058.
the day ahead
It's a quiet day ahead for XRP, with no US economic indicators for investors to consider. However, the talk related to the SEC v Ripple case and the updates to the US debt ceiling will play a role.
SEC activity and Binance and coin base (CURRENCYNews related to ) will also need consideration.
Ripple's main law office, Stuart Alderoty, had this for say about SEC Chairman Gary Gensler,
โFor this SEC chairman, the judicial process is a weapon to be wielded and congressional oversight is a game of hide-and-seek. This is not a crypto problem, it's an 'We the People' problem."
XRP Price Action
At the time of writing, XRP was down 0.90% at $0.42669. On a bearish morning, XRP fell from an opening price of $0.43032 to a low of $0.42594.
XRP Technical Indicators
Resistance and support levels
XRP needs to move through $0.4301 pivot to target the first major resistance level (R1) at $0.4441. A return to $0.43 would signal a bullish session. However, the SEC v Ripple talk and the US debt ceiling should support a breakout session.
In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4577. The third main resistance level (R3) sits at $0.4852.
Failure to move through the pivot would leave the first major support level (S1) at $0.4166 up for grabs. However, barring another crypto event or a risk-driven sell-off, XRP should avoid going below $0.40. The second major support level (S2) at $0.4026 should cap the downside. The third major support level (S3) sits at $0.3751.
He It's not and the 4-hour candlestick chart (below) sent bearish signals.
At the time of writing, XRP was trading below the 50-day EMA, currently at $0.43619. The 50 day EMA pulled back from the 200 day EMA, with the 100 day EMA pulling back from the 200 day EMA. The EMAs delivered bearish signals.
A move through the 50-day EMA ($0.43619) would support a break of R1 ($0.4441) to give the bulls a run to the 100-day EMA ($0.44862) and R2 ($0.4577). However, a failure to move through the 50-day EMA ($0.43619) would leave S1 ($0.4166) and major lower support levels at $0.41 in sight. A move through the 50-day EMA ($0.43619) would send a bullish signal.
