XRP Bulls to Target $0.40 as Investors Shun Traditional Asset Classes

Key Insights:

On Friday, XRP rose by 3.83% to end the day at $0.37967.
Investor demand for safe havens supported a decoupling from the NASDAQ Composite Index amidst a simmering US banking sector crisis.
The technical indicators turned bullish, signaling a return to $0.40.

On Friday, XRP rose by 3.83%. Following a 1.44% gain on Thursday, XRP ended the day at $0.37957. Significantly, XRP revisited the $0.38 handle for the first time in three sessions.
A bearish start to the day saw XRP fall to an early low of $0.36310. Steering clear of the First Major Support Level (S1) at $0.3596, XRP rose to an early afternoon high of 0.38283. XRP broke through the First Major Resistance Level (R1) at $0.3696 and the Second Major Resistance Level (R2) at $0.3737 to end the day at $0.37957.

XRP Enjoys BTC Support as Bank Crisis Fears Reignite
There were no updates from the ongoing SEC v Ripple case for investors to consider. While investors await rulings on the Hinman Documents and the Summary Judgment Reply Briefs, the US banking sector crisis drove demand for bitcoin (BTC) and the broader crypto market.
BTC surged by 9.14% as investors responded to the news of SV Financial Group (SIVB) filing for bankruptcy protection, Fed bailouts rising beyond levels seen during the global financial crisis, and 11 banks bailing out First Republic Bank.
The NASDAQ Composite Index fell by 0.74%, with the Dow and S&P 500 seeing losses of 1.19% and 1.10%, respectively. In contrast, the total crypto market cap surged by 7.32% ($77.35 billion) to $1,134 billion.

The Day Ahead
Investors should 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 that will likely to move the dial.
XRP Price Action
At the time of writing, XRP was up 0.76% to $0.38245. A mixed start to the day saw XRP fall to an early low of $0.37770 before rising to a high of $0.39041. XRP briefly broke through the First Major Resistance Level (R1) at $0.3872.

XRPUSD 180323 Daily Chart
Technical Indicators
XRP needs to avoid the $0.3752 pivot to retarget the First Major Resistance Level (R1) at $0.3872 and the morning high of $0.39041. A return to $0.39 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 $0.3949 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4146.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3675 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.36 and the Second Major Support Level (S2) at $0.3554. The Third Major Support Level (S3) sits at $0.3357.

XRPUSD 180323 Hourly Chart
The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
At the time of writing, XRP sat above the 200-day EMA, currently at $0.37784. 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 hold above the 200-day EMA ($0.37784) would support a breakout from R1 ($0.3872) to target R2 ($0.3949) and $0.40. However, a fall through the 200-day EMA ($0.37784) would bring the 100-day ($0.37350) and 50-day ($0.37125) EMAs into play. A fall through the 50-day EMA would send a bearish signal and give the bears a run at the Major Support Levels.

XRPUSD 180323 4 Hourly Chart

This article has been originally published at: https://www.fxempire.com/forecasts/article/xrp-bulls-to-target-0-40-as-investors-shun-traditional-asset-classes-1315008