On Tuesday, XRP rallied by 3.11% to end the day at $0.37517.
Market reaction to Ripple news and optimism toward the outcome of the SEC case provided support.
However, the technical indicators remain bearish, with XRP sitting below the 50-day EMA, signaling a possible return to sub-$0.30.
On Tuesday, XRP rallied by 3.11%. Following a 0.85% gain on Monday, XRP ended the day at $0.37517. Notably, XRP avoided a return to sub-$0.35.
A bearish start to the day saw XRP fall to a mid-morning low of $0.35112. Steering clear of the First Major Support Level (S1) at $0.3504, XRP rose to a late high of $0.37755. XRP broke through the First Major Resistance Level (R1) at $0.3727 to end the day at $0.37517.
FTX contagion risk eased on Tuesday, despite the news of Genesis delivering a bankruptcy warning. News updates on FTX assets, including a cash stockpile and interest in FTX assets, delivered support.
With market sentiment improving, investors returned their attention to recent Ripple news updates. Investor sentiment toward the outcome of the ongoing SEC v Ripple case also remained a key driver.
Ripple Partnerships with Banks to Grow on Conclusion to the Case
On Tuesday, Ripple was back in the spotlight. Reports of the Bank of America (BAC) waiting for a conclusion to the SEC v Ripple case to begin using Ripple’s ODL products delivered additional price support.
Brad Garlinghouse reportedly told Linqto Director of Member Sales Nick Burrafato that Bank of America plans to use the ODL (on-demand liquidity) products upon conclusion of the ongoing SEC v Ripple case.
Israel’s Bank Leumi, Canada’s CIBC, and the National Australia Bank partnered to use Ripple blockchain tech in March, with Australia’s Commonwealth Bank also partnering with Ripple.
However, there were no updates from the SEC v Ripple case to influence.
XRP Price Action
At the time of writing, XRP was down 1.60% to $0.36918. A mixed start to the day saw XRP rise to an early high of $0.37503 before falling to a low of $0.36775.
XRPUSD 231122 Daily Chart
XRP needs to avoid the $0.3679 pivot to target the First Major Resistance Level (R1) at $0.3838. A return to the Monday high of $0.37755 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 $0.3944 and $0.40. The Third Major Resistance Level (R3) sits at $0.4208.
However, a fall through the pivot would bring the First Major Support Level (S1) at $0.3583 into play. Barring another extended sell-off, XRP should avoid sub-$0.3450 and the Second Major Support Level (S2) at $0.3415. The Third Major Support Level (S3) sits at $0.3151.
However, news of crypto platforms freezing withdrawals or filing for bankruptcy would likely overshadow the latest Ripple news and send XRP toward sub-$0.30.
XRPUSD 231122 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 $0.37302. The 50-day EMA slipped 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 the 50-day EMA ($0.37302) would support a breakout from R1 ($0.3848) to target the 100-day EMA ($0.38787) and R2 ($0.3944). However, a failure to move through the 50-day EMA ($0.37302) would give the bears a run at S1 ($0.3583) and sub-$0.35. The 200-day EMA sits at $0.40980.
This article has been originally published at: https://www.fxempire.com/forecasts/article/xrp-target-remains-0-40-on-ripple-product-and-sec-v-ripple-sentiment-1207551