In This Article:
Key Insights:
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XRP rallied by 3.95% on Wednesday, supported by the broader crypto market and the latest court ruling from the SEC v Ripple case.
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A pickup in US inflationary pressure sent XRP into the red before a late crypto rebound.
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Technical indicators are bearish, with XRP sitting below the 50-day EMA.
On Wednesday, XRP rallied by 3.95%. Reversing a 1.14% decline from Tuesday, XRP ended the day at $0.3235.
The choppy session saw XRP slide through the First Major Support Level at $0.3017 to a day low of $0.3027. Investor reaction to June inflation figures from the US hit riskier assets before a late rebound.
XRP broke through the First Major Resistance Level at $0.3168 and the Second Major Resistance Level at $0.3225 to strike a late high of $0.3253 before easing back.
The upside came despite the NASDAQ ending the day in the red, with the breakout coming after the US market close.
Market Sentiment Toward US Inflation and Fed Monetary Policy Weighs
This morning, XRP joined the broader crypto market in the red. Market angst over Fed monetary policy weighed on riskier assets going into the European open.
Hawkish FOMC member chatter, in response to the US inflation figures, hit the markets overnight.
Today, US wholesale inflation figures will also garner plenty of interest ahead of US retail sales data on Friday.
US economic indicators this week will likely dictate the magnitude of the Fed rate hike later this month. Upbeat retail sales figures, combined with robust labor market conditions and resilient inflationary pressure, could lead to more than a 75 basis point rate hike.
The market focus on inflation overshadowed the latest court ruling from the SEC v Ripple case.
On Tuesday, the US courts denied the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege. The ruling tilted the scales in favor of Ripple.
XRP Price Action
At the time of writing, XRP was down 1.58% to $0.3184.
A mixed start to the day saw XRP rise to an early high of $0.3247 before falling to a low of $0.3183.
XRP left the Major Support and Resistance Levels untested early on.
Technical Indicators
A hold above the $0.3172 pivot would support a run at the First Major Resistance Level (R1) at $0.3316.
XRP would need a shift in investor sentiment to support a breakout from the Wednesday high of $0.3253.
In the case of an extended crypto rally, XRP could target the Second Major Resistance Level (R2) at $0.3398 and resistance at $0.34.
The Third Major Resistance Level (R3) sits at $0.3624.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3090 into play.