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XRP Bears Eye Sub-$0.44 on SEC v Ripple Silence and Recession Fear
For XRP, Tuesday's session was optimistic. However, the $0.50 handle will continue to be out of reach due to a lack of developments in the SEC v. Ripple lawsuit.
Tuesday saw a 2.02% increase in XRP. XRP finished the day at $0.46974, reversing a 0.96% decline from Monday. XRP fell short of $0.50 for the sixth session in a row despite the positive day.
Following the general market decline, XRP dropped to a morning low of $0.45102. XRP climbed to a high of $0.47162 while avoiding the First Major Resistance Level (R1) at $0.4435. However, XRP slipped slightly to conclude the session at less than $0.47 after falling short of the First Major Resistance Level (R1) at $0.4812.
Corporate earnings and the US banking sector's problems provided support
There were no new developments in the SEC v. Ripple lawsuit on Tuesday. Due to a lack of court decisions, XRP was at the mercy of US profits and economic calendars as well as news pertaining to the financial industry.
The survey's findings, which predicted a US economic slump, impacted on market mood. The earnings figures for UPS (UPS) increased the gloomy feeling.
A late rally was nonetheless helped by declining deposits at First Republic Bank (FRC) and encouraging Microsoft (MSFT) and Alphabet Inc. (GOOGL) results.
The Fed's easing of bets on interest rate increases in May and June also benefited cryptocurrencies.
The likelihood of a 25-basis point interest rate increase in May decreased from 90.5% to 76.1% on Tuesday, according to the CME FedWatchTool. Significantly, the likelihood of an increase in June dropped from 24.7% to 9.2%, reflecting the session's optimistic conclusion on Tuesday.
Even so, the benefit was not great. As anticipation of court decisions this week start to wane, the absence of court decisions has kept XRP at or below $0.50.
The Day Ahead Investors should be aware that a decision might be made at any moment as updates from the current SEC v. Ripple lawsuit will continue to be the major focus. News about Binance and Coinbase (COIN) will be of interest, as will US regulatory activities and legislator talk.
The US economic and earnings calendars would have more sway if the Courts were silent for one more day.
The afternoon's events will be influenced by US durable goods orders. A greater-than-anticipated decline in orders would feed the growing anxiety about a US recession.
The US earnings schedule, though, will also be of importance. Meta Platforms (META) is one of the notable names on the US earnings calendar.
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