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XRPUSD Market Update

3/8/2023 2:26 PM

The XRP/USD pair started the current week with a decline in the area of 0.3630, but then sharply corrected upwards, reaching the middle line of the Bollinger Bands in the area of 0.3780.

This growth was atypical for the rest of the cryptocurrency market, which is currently under pressure from monetary factors. Such dynamics were caused by new court decisions on the lawsuit of the U.S. Securities and Exchange Commission (SEC) against Ripple. On Monday, Judge Analisa Torres made a decision on which conclusions of fifteen experts provided by the parties to the process will be taken into account in the final decision of the case, and which will not. At first glance, neither the SEC nor Ripple achieved the expected results, since several expert opinions defending the positions of each of the parties were rejected, but with a more detailed examination of the situation, Ripple's position seems more advantageous. The fact is that the court refused to take into account the opinion of SEC expert Patrick Doody, who sought to prove that investors, buying XRP, expected to make a profit from the company, therefore, the token can be considered a security. Thus, Ripple's chances of a successful outcome of the process began to look more preferable, and investors assessed the court's decision positively, and the pair's quotes began to grow.

Nevertheless, the current dynamics may be short-lived, since the long-term negative impact of American monetary factors on the cryptocurrency market will continue. Speaking to Congress, the head of the US Fed Jerome Powell confirmed the need to further increase the interest rate and bring it to higher than previously expected peak values. The tightening cycle of the US monetary policy in the future will continue to strengthen the US currency and put pressure on alternative assets.

Now the price continues to test the middle line of the Bollinger Bands around 0.3780 and, if consolidated above it, will continue to rise to the levels of 0.4000 (upper line of the Bollinger Bands), 0.4150 (Murray level [+1/8]) and 0.4330 (Fibo retracement 23.6%). The key for the "bears" remains the level of 0.3662 (Murray level [7/8]), with consolidation below it, the movement will resume to the area of 0.3418 (Murray level [6/8]) and 0.3174 (Murray level [5/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, but the MACD histogram is decreasing in the negative zone, and the Stochastic is directed upwards.

Resistance levels: 0.3780, 0.4000, 0.4150, 0.4330. | Support levels: 0.3662, 0.3418, 0.3174.

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