- On Sunday, XRP rallied 3.06% to end the day at $0.53481.
- Ripple-related news and optimism toward the SEC v Ripple case supported a breakout session.
- The technical indicators remain bullish, signaling a return to $0.55.
On Sunday, XRP gained 3.06%. Reversing a 1.19% loss on Saturday, XRP ended the week up 10.82% to $0.53481. Significantly, XRP revisited the $0.54 handle for the first time since April 14.
A mixed start to the day saw XRP fall to an early morning low of $0.51558. Steering clear of the First Major Support Level (S1) at $0.5113, XRP rallied to a late-session high of $0.54647. XRP broke through the First Major Resistance Level (R1) at $0.5298 and briefly through the Second Major Resistance Level (R2) at $0.5407 before easing back to end the day at $0.53481.
Ripple IPO Chatter and Hopes of a Ripple Win Delivered Support
It was a quiet Sunday session. There was no SEC v Ripple case-related news to provide direction. The lack of updates left XRP in the hands of the crypto news wires.
However, Ripple IPO chatter supported the bullish session. IPO chatter began late last week and continued into the weekend. Wealth mentor and author Linda P. Jones had this to say about an IPO,
“I’ve thought about it and concluded that it makes sense to have an IPO when XRP is low-priced. When XRP is worth more, it will make the market cap too high, so the sooner after the lawsuit is over the better.”
With the crypto community seeing a Ripple IPO as a boon for XRP, optimism toward a Ripple win in the ongoing SEC v Ripple case added support. The infamous William Hinman speech-related documents will reach the public on June 13, and the general view is that the content will damage the image of the SEC and SEC Chair Gary Gensler.
With lawmakers pushing for regulatory reform, the content could bring an end to the regulation by enforcement mantra of the SEC and the US Administration’s anti-crypto rhetoric.
The Day Ahead
It is a busier Monday session, with economic indicators from the US and China likely to move the dial.
The SEC and US administration have yet to respond to the release of the Digital Asset Market Structure Draft Bill, which also needs consideration. A lack of support for regulatory clarity could test buyer appetite.
XRP Price Action
At the time of writing, XRP was up 0.96% to $0.53997. A mixed start to the day saw XRP fall to an early low of $0.53468 before rising to a high of $0.54042.
Resistance & Support Levels
|R1 – $||0.5490||S1 – $||0.5181|
|R2 – $||0.5632||S2 – $||0.5014|
|R3 – $||0.5941||S3 – $||0.4705|
XRP needs to avoid the $0.5323 pivot to target the First Major Resistance Level (R1) at $0.5490. A move through the Sunday high of $0.54647 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5632. The Third Major Resistance Level (R3) sits at $0.5941.
A fall through the pivot would bring the First Major Support Level (S1) at $0.5181 into play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.51 and the Second Major Support Level (S2) at $0.5014. The Third Major Support Level (S3) sits at $0.4705.
The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.50876. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.
A hold above S1 ($0.5181) and the 50-day EMA ($0.50876) would support a breakout from R1 ($0.5490) to target R2 ($0.5632). However, a fall through S1 ($0.5181) and the 50-day EMA ($0.50876) would bring S2 ($0.5014) into view. A fall through the 50-day EMA would send a bearish signal.
This article was originally posted on FX Empire
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