XRP price action on Wednesday offered a glimpse of the cryptocurrency’s current state: cautiously optimistic. Despite a brief dip below $0.60, XRP managed to finish the day at $0.6181, a 0.55% gain. This rise came despite broader market anxieties surrounding US inflation data.
Hotter-than-expected inflation numbers, initially causing investor angst, ultimately fueled a positive reaction in XRP and the crypto market as a whole. XRP climbed to a session high of $0.6212 before settling slightly below the $0.62 mark. However, compared to the total crypto market cap’s 1.50% increase, XRP lagged.
The lingering shadow of the SEC v. Ripple lawsuit continues to dampen XRP’s potential. With no updates on the case Wednesday, investors remain apprehensive as Ripple prepares to file its opposition brief by April 22nd. The size of any potential penalty for breaching securities laws hinges on this brief’s content.
While the crypto community anticipates the penalty outcome, a potential SEC appeal against the Programmatic Sales of XRP ruling carries more weight. This ruling, which investors have already factored into the price, did not address the possibility of appellate courts overturning it. The July 2023 market response to these rulings highlights this concern: XRP surged on the initial ruling but plummeted on the threat of an appeal.
US lawmaker intervention offers a counterpoint to the SEC lawsuit’s apprehension. Hopes for regulatory clarity and a potential XRP-spot ETF market provide some downside cushion. However, the classification of XRP and other altcoins as commodities or securities remains a hurdle before such an ETF market can flourish.
Technically, XRP’s position above both the 50-day and 200-day EMAs sends bullish signals. A break above the April 9th high of $0.6424 could see bulls target the $0.6609 resistance level. Conversely, a breach below the 50-day EMA could lead to a test of the $0.5740 support level. The 14-day RSI reading of 52.61 suggests room for XRP to climb towards $0.70 before entering overbought territory.
The 4-hourly chart paints a similar picture, with XRP hovering above its key EMAs. A return to the April 9th high could pave the way for a move towards the $0.6609 resistance. However, a break below both EMAs would expose the $0.5739 support level. The 4-hourly RSI, currently at 57.35, indicates there’s space for further gains before overbought conditions set in.
In conclusion, XRP’s price action reflects a mix of optimism and lingering uncertainties. While the SEC lawsuit and inflation concerns pose challenges, hopes for regulatory clarity and a potential XRP-spot ETF market offer some solace. Technically, XRP’s position suggests a potential upside, but key support levels remain crucial to watch shortly.