On Tuesday, XRP joined the broader crypto market in the red, sliding by 3.92% to end the day at $0.40802.
Sentiment toward the SEC v Ripple case took a backseat, with investors responding to the latest Binance news and a bearish NASDAQ session.
However, the technical indicators remain bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.
On Tuesday, XRP slid by 3.92%. Partially reversing a 5.97% rally from Monday, XRP ended the day at $0.40802. XRP visited $0.43 for the second time since November 8.
A bullish start to the day saw XRP rally to a late morning high of $0.43106 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.4384, XRP slid to a late low of $0.40314. XRP briefly fell through the First Major Support Level (S1) at $0.4056 before ending the day at $0.40802.
SEC v Ripple Sentiment Takes a Backseat as Binance Faces Scrutiny
It was another quiet session on Tuesday. A lack of updates from the ongoing SEC v Ripple case left XRP in the hands of the broader crypto market.
Binance was in the news on Tuesday, with reports of Binance commingling customer and reserve funds in a single wallet, causing investor angst. Amidst increased regulatory scrutiny in the wake of the FTX collapse, more negative news brings the crypto market unwanted attention.
However, hopes of a smooth end to the Genesis bankruptcy proceedings and an FTX revival will continue to provide price support.
Today, the broader crypto market will likely continue to guide XRP. FTX, Genesis, and Binance will remain focal points. However, XRP would need Court rulings from the SEC v Ripple case to support a decoupling from the broader crypto market.
While there are no US economic indicators to consider, US corporate earnings will influence investor sentiment. Boeing (BA), IBM (IBM), and Tesla (TSLA) are among the big names releasing earnings results today.
XRP Price Action
At the time of writing, XRP was down 1.01% to $0.40391. A bearish start to the day saw XRP fall from an early high of $0.40744 to a low of $0.39770.
XRPUSD 250123 Daily Chart
XRP needs to move through the $0.4141 pivot to target the First Major Resistance Level (R1) at $0.4250 and the Tuesday high of $0.43106. A return to $0.42 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 another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4420. The Third Major Resistance Level (R3) sits at $0.4699.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3971 in play. However, barring another extended sell-off, XRP should avoid sub-$0.3950 and the Second Major Support Level (S2) at $0.3862. The Third Major Support Level (S3) sits at $0.3582.
XRPUSD 250123 Hourly Chart
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.40328. The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The signals were bullish.
A hold above the 50-day EMA ($0.40328) would support a breakout from R1 ($0.4250) to target R2 ($0.4420). However, a fall through the 50-day EMA ($0.40328) would bring S1 ($0.3971) and the 100-day EMA ($0.39024) into view. A pullback from the 50-day EMA would be a bearish signal.
This article has been originally published at: https://www.fxempire.com/forecasts/article/xrp-bulls-need-a-surprise-sec-v-ripple-court-ruling-to-deliver-0-45-1264329