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Key Insights:
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XRP rallied by 6.47% on Monday. Reversing a 2.11% decline from Sunday.
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A shift in investor sentiment away from economic recession fears delivered support along with crypto network news updates.
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The technical indicators are bullish, with XRP sitting above the 200-day EMA.
On Monday, XRP rallied by 6.47%. Reversing a 2.11% decline from Sunday, XRP ended the day at $0.3653.
A bullish session saw XRP rally from an early low of $0.3429 to a high of $0.3697. XRP broke through the First Major Resistance Level (R1) at $0.3557 and the Second Major Resistance Level (R2) at $0.3684.
However, coming up against resistance at $0.37, XRP briefly fell through R1 and R2 before a late bounce back to $0.3671.
XRP broke through R1 to end the day at $0.3653.
A shift in market sentiment, supported by progress towards an Ethereum merge in September, delivered a breakout session.
There were no crypto news stories to influence, with updates from the SEC v Ripple case having a muted impact.
Economic Uncertainty Takes a Back Seat as Investors
XRP tracked the broader market on Monday, with a bitcoin (BTC) return to $22,000 signaling a possible end to the crypto winter.
Ethereum (ETH) Merge updates from the weekend appear to have drawn investor interest. The court ruling on the Hinman speech-related documents was also XRP and crypto market positive.
While the SEC may appeal against the court ruling, bets are on a settlement. SEC Chair Gary Gensler is facing increased scrutiny. A loss against Ripple could end SEC hopes of regulating the digital asset space.
Later today, the SEC is in the spotlight, with SEC Enforcement Director Gurbir Grewal testifying in front of the Capital Markets Subcommittee. The hearing follows reports of SEC Chair Gary Gensler looking to give the crypto market exemptions from some securities regulations.
News updates from Capitol Hill will provide direction as investors continue to monitor filings, motions, and rulings from the SEC v Ripple case.
XRP Price Action
At the time of writing, XRP was down 2.41% to $0.3565.
A mixed start to the day saw XRP rise to an early high of $0.3692 before falling to a low of $0.3554.
Technical Indicators
XRP needs to move through the $0.3593 pivot to support a run at the First Major Resistance Level (R1) at $0.3757.
XRP would need support from the broader market to break out from the morning high of $0.3692 and the Monday high of $0.3697.
In the case of an extended crypto rally, XRP could test resistance at $0.38 and the Second Major Resistance Level (R2) at $0.3861. The Third Major Resistance Level (R3) sits at $0.4129.