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Key Insights:
- On Sunday, XRP joined the broader crypto market in the red for a second consecutive session.
- Recessionary jitters and Fed Fear continued to weigh on investor sentiment.
- The technical indicators turned bearish, signaling a return to sub-$0.45.
On Sunday, XRP fell by 1.39%. Following a 0.37% decline on Saturday, XRP ended the week up 1.48% to $0.47163.
After a range-bound morning session, XRP rose to a mid-afternoon high of $0.48172. However, falling short of the First Major Resistance Level (R1) at $0.4862, XRP slid to a low of $0.46932.
XRP briefly fell through the First Major Support Level (S1) at $0.4710 before wrapping up the day at $0.47163.
Recessionary Jitters and Fed Fear Weighed on XRP
It was a quiet Sunday session. There were no SEC v Ripple case updates to influence buyer appetite. The lack of updates left XRP in the hands of regulatory activity and First Republic Bank (FRC)-related news.
On Sunday, news hit the wires of US regulators attempting to avert a banking crisis by selling the beleaguered bank to a large US bank. JP Morgan Chase (JPM) was reportedly the front-runner. Later in the session, news of PNC Financial Services (PNC), JPMorgan, Citizens Financial Group (CFG), and other banks submitting bids in a First Republic Bank auction eased bets on another US bank collapse.
A deepening banking crisis would support XRP and the broader crypto market. XRP and Ripple offer depositors a viable alternative to banks.
Considering the increased US administration condemnation of the digital asset space, The First Republic Bank’s woes could force the White House to turn its attention to the banking sector.
While First Republic Bank continued to grab the news headlines, recessionary jitters lingered ahead of the Fed interest rate decision this Wednesday. SEC activity also contributed to the bearish mood, with the SEC issuing CoinMe with a Cease-and-Desist order.
The Day Ahead
Investors should continue to monitor SEC v Ripple case-related chatter, with Binance and Coinbase (COIN)-related news also needing consideration. However, Investors should track US regulatory activity and lawmaker chatter.
While SEC activity remains a focal point, updates from US regulators on First Republic Bank will also move the dial. The collapse of First Republic Bank could force the Fed to hit the brakes in the battle to bring inflation to target.
This afternoon, ISM Manufacturing PMI numbers from the US will also influence. A more marked contraction in the manufacturing sector would fuel recessionary fears.
XRP Price Action
At the time of writing, XRP was down 1.72% to $0.46354. A choppy start to the day saw XRP rise to an early high of $0.47256 before falling to a low of $0.45931. XRP fell through the First Major Support Level (S1) at $0.4667 and briefly through the Second Major Support Level (S2) at $0.4618.
Technical Indicators
Resistance & Support Levels
| R1 – $ | 0.4791 | S1 – $ | 0.4667 |
| R2 – $ | 0.4866 | S2 – $ | 0.4618 |
| R3 – $ | 0.4990 | S3 – $ | 0.4494 |
XRP needs to move through S1 and the $0.4742 pivot to target the First Major Resistance Level (R1) at $0.4791 and the Sunday high of $0.48172. A return to $0.4750 would signal a bullish session. However, SEC v Ripple chatter and the cryptomarket newsmust support a breakout.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4866 and resistance at $0.49. The Third Major Resistance Level (R3) sits at $0.4990.
Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $0.4618 in play. However, barring a crypto event-fueled sell-off, XRP should avoid sub-$0.4550 and the Third Major Support Level (S3) at $0.4494.
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 $0.47333. The 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA. The EMAs delivered bearish signals.
A move through the 50-day ($0.47333) and 200-day ($0.47723) EMAs would support a breakout from R1 ($0.4791) and the 100-day EMA ($0.47916) to target R2 ($0.4866). However, failure to move through S1 ($0.4667) and the 50-day EMA ($0.47333) would leave S2 ($0.4618) and sub-$0.46 in view. A move through the 50-day EMA would send a bullish signal.
This article was originally posted on FX Empire
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