On Monday, XRP rose by 0.85%. Bucking the broader market trend, XRP ended the day at $0.36386.
Market sentiment towards the SEC v Ripple case provided much-needed support as FTX contagion gripped the broader market.
However, the technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a possible return to sub-$0.30.
On Monday, XRP rose by 0.85%. Partially reversing a 6.03% slide from Sunday, XRP ended the day at $0.36386. Notably, XRP fell to sub-$0.35 for the first time in seven sessions.
A bearish start to the day saw XRP fall to an early morning low of $0.34584. XRP fell through the First Major Support Level (S1) at $0.3478 before rising to a late high of $0.36811. However, coming up short of the First Major Resistance Level (R1) at $0.3846, XRP eased back to end the day at sub-$0.3650.
FTX contagion risk weighed on investor sentiment. The news of Genesis delivering a bankruptcy warning sent XRP and the broader crypto market into the red. Despite the bearish mood, investor sentiment toward the ongoing SEC v Ripple case remains price positive.
Ripple Legal Counsel Considers SEC Argument Against Ripple
There were no updates from the SEC v Ripple case draw interest. However, defense lawyer James Filan shared the latest views of Ripple legal counsel Stuart Alderoty.
On Monday, Stuart Alderoty stated,
“To be clear, the SEC hasn’t labeled XRP a security, nor does it have the power to do so. One Judge put it this way: the SEC can only ask the question, and the court ultimately decides.”
Alderoty’s comments followed a series of Amicus Brief filings looking to dismantle the SEC’s case against Ripple.
While investor sentiment toward the SEC v Ripple case delivers support, Ripple’s expansion plans and platform updates have cushioned the downside.
XRP Price Action
At the time of writing, XRP was 2.44% to $0.35500. A mixed start to the day saw XRP rise to an early high of $0.36677 before sliding to a low of $0.35500.
XRPUSD 221122 Daily Chart
XRP needs to move through the $0.3593 pivot to target the First Major Resistance Level (R1) at $0.3727. A return to the Monday high of $0.36811 would signal a breakout session.
In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.3815 and $0.39. The Third Major Resistance Level (R3) sits at $0.4038.
However, failure to move through the pivot would leave the First Major Support Level (S1) at $0.3504 in play. Barring another extended sell-off, XRP should avoid sub-$0.34 and the Second Major Support Level (S2) at $0.3370. The Third Major Support Level (S3) sits at $0.3147.
However, news of crypto platforms freezing withdrawals or filings for bankruptcy would send XRP toward sub-$0.30.
XRPUSD 221122 Hourly Chart
The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
At the time of writing, XRP sat below the 50-day EMA, currently at $0.37426. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.
A move through R1 ($0.3727) and the 50-day EMA ($0.37426) would give the bulls a run at R2 ($0.3815) and the 100-day EMA ($0.39036). However, a failure to move through the 50-day EMA ($0.37426) would give the bears a run at S1 ($0.3504) and sub-$0.35. The 200-day EMA sits at $0.41237.
This article has been originally published at: https://www.fxempire.com/forecasts/article/xrp-eyes-0-375-to-retarget-0-40-on-positive-sec-v-ripple-sentiment-1206164