- On Friday, XRP rose by 0.75% to end the day at $0.41256.
- A lack of updates from the SEC v Ripple case left XRP in the hands of US inflation and the broader crypto market.
- The technical indicators remain bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.
On Friday, XRP rose by 0.75%. Partially reversing a 1.86% loss from Thursday, XRP ended the day at $0.41256. Despite the bullish session, XRP revisited sub-$0.40 levels for the second time in five sessions.
A bearish start to the day saw XRP slide to an early morning low of $0.39899. XRP fell through the First Major Support Level (S1) at $0.4042. However, finding support at the Second Major Support Level (S2) at $0.3990, XRP rose to a late high of $0.41358. Coming up short of the First Major Resistance Level (R1) at $0.4160, XRP eased back to end the day at $0.41256.
US Inflation and the NASDAQ Index Deliver XRP Price Support
There were no updates from the ongoing SEC v Ripple case to distract investors on Friday. The lack of updates left XRP in the hands of US economic indicators and the crypto news wires.
US inflation figures cemented market bets of a 25-basis point interest rate hike next week. The Core PCE Price Index increased by 4.4% year-over-year in December versus 4.7% in November.
A fall in personal spending and a modest increase in personal income also favored a less aggressive Fed interest rate trajectory to bring inflation to target.
In response to the stats, the NASDAQ Composite Index rose by 0.95% to extend its weekly winning streak to four.
However, US lawmakers and regulatory scrutiny capped the upside on Friday. The White House Administration and the SEC were in the news, with the Administration calling for more crypto regulations and the SEC investigating investment advisers over crypto-related custody rule breaches.
Ripple Appoints New President in Show of Confidence
While there were no SEC v Ripple case updates to consider, Ripple announced a new President on Friday.
Ripple CEO Brad Garlinghouse shared the announcement, saying,
“There’s a lot I could say about how singularly impactful Monica Long has been to Ripple’s growth, for now, I’ll just leave you with – she is brilliant, strategic, and has the ability to pick up and learn skills like no one I’ve ever seen before. Congrats Monica!”
The appointment reflected Ripple’s expansion goals, with product success coming despite the ongoing SEC v Ripple case.
The Day Ahead
Today, investors should monitor updates from the SEC v Ripple case. However, a lack of updates would leave the broader crypto market to provide direction. FTX and Genesis updates, along with regulatory chatter, will draw interest.
XRP Price Action
At the time of writing, XRP was up 0.43% to $0.41433. A mixed start to the day saw XRP fall to an early low of $0.41054 before rising to a high of $0.41643.
XRPUSD 280123 Daily Chart
XRP needs to avoid a fall through the $0.4084 pivot to target the First Major Resistance Level (R1) at $0.4178. A return to $0.4100 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 $0.4230 and resistance at $0.4250. The Third Major Resistance Level (R3) sits at $0.4376.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4032 into play. However, barring a crypto event-fueled sell-off, XRP should avoid sub-$0.40 and the Second Major Support Level (S2) at $0.3938. The Third Major Support Level (S3) sits at $0.3792.
XRPUSD 280123 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 $0.40674. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.
A hold above the 50-day EMA ($0.40674) would support a breakout from R1 ($0.4178) to target R2 ($0.4230) and $0.4250. However, a fall through the 50-day EMA ($0.40674) would bring S1 ($0.4034) into view. A fall through the 50-day EMA would send a bearish signal.
XRPUSD 280123 4 Hourly Chart