XRP Finds Relief on Binance News to Bring $0.40 into View

Key Insights:

• On Monday, XRP rose for the second time in ten sessions, ending the day at $0.37691.
• Market angst over the FTX collapse and contagion subsided on news of Binance launching a crypto recovery fund.
• However, the technical indicators remain bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.30.

On Monday, XRP rallied by 10.76%. Reversing a 6.07% loss from Sunday, XRP ended the day at $0.37691. Notably, XRP ended the day at sub-$0.40 for the sixth consecutive session while avoiding the red for the second time in ten sessions.

A bearish start to the day saw XRP slide to an early low of $0.3210. XRP fell through the First Major Support Level (S1) at $0.3259. However, market reaction to news of Binance launching a recovery fund led XRP to a late high of $0.37899. XRP broke through the First Major Resistance Level (R1) at $0.3616 to end the day at $0.37691.

Going into the Monday session, FTX remained the focal point. Contagion fear continued to grip the market, sending XRP to sub-$0.33 for the first time in five sessions. However, the Binance news fueled an XRP and broader-based crypto rebound.

Investors hope that the recovery fund will limit the impact of the FTX collapse on the broader market. Updates from the ongoing SEC v Ripple case also delivered XRP price support.

Court Grants Motions for Amicus Brief Filings by November 18

On Monday, a Court ruling went against the SEC. Judge Torres granted motions for the Association, six XRP holders, Coinbase, the CCI, Valhil, Cryptillian, Veri DAO, Reaper Financial, InvestReady, NSEI, and Paradigm to file their formal briefs by November 18.

Before the Court decision, the SEC had filed a motion for a November 11 deadline for all Amicus Brief filings. The latest Court ruling suggests that the Amicus Briefs could influence the Court.

While the news of the Binance recovery fund was the key to Monday’s rally, Monday’s Court decision supported those predicting a Ripple victory in its case against the SEC.

XRP Price Action

At the time of writing, XRP was up 0.64% to $0.37933. A mixed start to the day saw XRP fall to an early low of $0.37490 before rising to a high of $0.38684.

Technical Indicators

XRP needs to avoid the $0.3590 pivot to target the First Major Resistance Level (R1) at $0.3969. A return to $0.3850 would signal a bullish session, though the markets may need more details on the Binance recovery fund.

In the case of an extended rally, the bulls would take a run at $0.40 but fall short of the Second Major Resistance Level (R2) at $0.4170. The Third Major Resistance Level (R3) sits at $0.4749.

A fall through the pivot would bring the First Major Support Level (S2) at $0.3389 into play. However, barring another extended sell-off, XRP should avoid sub-$0.32 and the Second Major Support Level (S2) at $0.3010. The Third Major Support Level (S3) sits at $0.2430.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.38556. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.38556) would bring R1 ($0.0.3969) and $0.40 into play. However, failure to move through the 50-day EMA ($0.38556) would leave S1 ($0.3389) sub-$0.30 in view.