- XRP rallied by 3.29% on Monday, ending the day at $0.3988.
- Regulatory scrutiny faced by XRP last week caused some concern in the market; however, a respite was provided by the silence of US regulators and lawmakers.
- Technical indicators have turned bullish, indicating a potential return to $0.42.
XRP had a positive day on Monday, February 21st, boosted by expansion news from Ripple and overall market support. The cryptocurrency saw a 3.3% rally, reversing the 2% decline from the previous day to close at $0.3988. This upward momentum allowed XRP to reach $0.40 for the first time in four sessions.
XRP Struggles to Maintain Gains
Monday began with a bearish start as XRP slid to an early morning low of $0.3750, testing the second major pivot support level at $0.3772. However, crypto market support helped XRP surge to an early afternoon high of $0.4092, breaking through the first resistance level at $0.3940.
While XRP briefly broke the second major resistance level at $0.4020, it could not maintain the price point, eventually settling at $0.3988.
The recent lack of regulatory updates in the ongoing SEC v Ripple case has been a catalyst for its bullish sessions. However, investors should still expect SEC activity and US lawmaker discussions to continue impacting XRP’s performance.
At the time of writing, XRP is down roughly 2% for the day at $0.3915. Technical Indicators show that XRP must regain the $0.3950 pivot to aim for the first major resistance level at $0.4120.
XRP/USD Daily Chart. Source: TradingView
A move through the Monday high of $0.4092 would signal a continuation of the recent bullish sessions. While broader market sell-off or negative SEC v Ripple news could hinder this, a bullish breakout on Bitcoin and positive news for Ripple could push XRP’s price higher.
XRP’s Technical Outlook
If XRP experiences another extended rally, it would likely test the second major resistance level at $0.4260, with the next resistance level sitting at $0.4570.
XRP/USD One-Hour Chart. Source: TradingView
A confirmed daily candle below the $0.3950 pivot would bring the first major support level to $0.3810. If this level does not hold, the next levels would be $0.3640 and $0.3326.
The exponential moving averages (EMA) and the four-hourly candlestick chart indicate a bullish signal, with XRP above the 100-day EMA at $0.3920. If the 50-day EMA crosses through the 100-day EMA, it would be called a golden cross and would support a breakout from the resistance at $0.4121 to bring $0.4259 into play.
On the other hand, a fall through the EMAs would signal a death cross, with $0.3810 being the first major support level.
XRP/USDT Four-Hour Chart. Source: TradingView
On the Flipside
- Unforeseen events can always affect the market and alter the forecast.
- Market sentiment can drastically change price action, putting the situation at odds with technical data.
Why You Should Care
Because XRP is actively observed for its price movements and ability to play a role in the crypto and blockchain industries, current market circumstances and important indicators can significantly influence its future growth.
For recent information on the SEC and Ripple Lawsuit:
Ripple’s Legal Drama Puts US SEC Judge on the Spot
Find out more on recent changes at Ripple:
Will Ripple’s CBDC Boost Singapore’s Financial Sector?