Forex Signals Brief April 9: Can S&P 500 Make the Break Today and Close A great Week?

By: fxleaders|2025/05/09 16:45:02
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Stock markets have resumed the upward trend, with S&P 500 testing resistance, which could be broken today is sentiment remains positive. On UK Day, the Bank of England decided to reduce interest rates by 25 basis points, which was in line with expectations. However, some market participants had hoped for a 50 basis point cut, while others favored maintaining the current rate. BOE Chair Andrew Bailey found himself in the spotlight as he faced a barrage of questions during a Q&A session, putting him under considerable pressure. In a significant development, the United States and the United Kingdom announced the framework for a new trade agreement. This agreement keeps a 10% tariff on all goods and is expected to create $5 billion in new opportunities for US exporters, according to US Commerce Secretary Lutnick. Additionally, the UK will purchase $10 billion worth of Boeing aircraft, while the US agreed to allow Rolls-Royce engines and parts to be imported tariff-free. Rolls-Royce and Bentley cars are also exempt from tariffs. UK officials noted that the final elements of the deal are expected to be concluded in the coming weeks. The United States will also gain access to new markets for machinery and chemicals. Josh Brown, speaking cynically on CNBC, remarked, “The United States has reached an agreement with its strongest ally for the last 200+ years.” His comment summed up the mood surrounding the trade deal. The NY Post reported that the US might reduce tariffs on Chinese imports to 50% by next week, and President Trump expressed confidence about the upcoming discussions with China. According to Trump, 10% tariffs were the best deal a nation could get. After declines in the first two trading days of the week, stocks bounced back over the past two sessions. The Dow rose by 0.62%, maintaining a slight weekly gain of 0.12%, while the S&P 500 increased by 0.58%, although it was still down 0.40% for the week. The Nasdaq posted a 1.07% gain, but remained down 0.28% for the week. The outcome of the final day of trading will determine whether the week ends on a positive note. The US dollar strengthened against major currencies, with the EUR/USD falling to lows of 1.12, GBP/USD dropping to 1.3250, and USD/JPY rising by 2.5 cents to surpass 146. In Canada, the unemployment rate is expected to remain at 6.7%, but employment is projected to increase by 24.5K, recovering from a previous decline of 32.6K. Today’s Market Outlook, Key Earnings to Watch Today we have a plethora of central bankers speaking, starting with the UK Bank of England Andrew Bailey first in the European session, followed by FOMC Member Barkin, FOMC Member Williams, FOMC Member Goolsbee, FOMC Member Waller, FOMC Member Cook and FOMC Member Musalem who can induce some volatility in forex. S&P 500 Chart Daily – Can Buyers Push Above the 200 SMA Today? In Canada, the labor market has shown signs of strain since US tariffs were imposed in March, with the unemployment rate rising to 6.7% and employment falling. The labor force participation rate has also decreased for two consecutive months. Although the job market hasn’t collapsed entirely, unemployment is still below the 6.9% peak from last year. However, ongoing declines in job openings suggest further challenges ahead. RBC analysts predict the unemployment rate will continue to rise through the second half of 2025. Last week, markets were slower than what we’ve seen in recent months, with gold retreating as a result, the EUR/USD falling to 1.13, and stock markets continuing upward. The moves weren’t too big, but we opened 37 trading signals in total, finishing the week with 25 winning signals and 12 losing ones. Gold Pullback Stalls at the 20 Dily SMA Gold experienced a sharp correction after reaching an all-time high of $3,500 per ounce in April. In the past two days alone, spot gold (XAU/USD) has dropped nearly $140, bringing the price to around $3,300 per ounce, a 1.9% decline. This pullback coincided with a renewed sense of optimism in the markets, fueled by the announcement of the new US-UK trade deal. While this dip follows a sharp rally, some analysts suggest that the pullback is more driven by trade optimism than any fundamental change. The 20-day simple moving average (SMA) has served as strong support during gold’s rise. If the price stabilizes, potentially forming bullish reversal patterns, it could present an opportunity to enter long positions again. USD/JPY Buyers Return The USD/JPY pair recovered from the critical 140.00 level, supported by its 100-month moving average. However, a 2.5-cent surge yesterday pushed the pair to 146. Despite this recovery, the Japanese yen remains vulnerable to global risk sentiment and the momentum of the US dollar. USD/JPY – Weekly Chart Cryptocurrency Update Bitcoin Reclaims the $100 Level Bitcoin resumed the upside momentum and surged more than 6% yesterday, surpassing $103,850 and marking its first time above $100,000 since February. This movement highlights Bitcoin’s continued strength, as it held firm while other assets struggled. BTC /USD – Weekly chart Ethereum’s Recovery and Market Trends Ethereum had been in a prolonged downtrend for much of the year, falling from a high of $3,634 in January to a low of $1,475 in early April. This decline mirrored a broader flight from risk assets amid new US trade tariffs and global uncertainties. However, after the Petra upgrade, Ethereum experienced a significant rally, rising nearly 20% to surpass $2,000. This upward movement continued, pushing Ethereum beyond $2,200, reversing months of downward pressure. ETH /USD – Weekly Chart

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Is XRP a Good Investment in 2026? Why Is It Stuck at $1.45

XRP is up 6.7% this week, but exchange reserves remain high. Is a volatility spike imminent? We analyze price trend, ETF inflows, whale activity, and regulatory catalysts to answer: will XRP go up, why is XRP dropping, and is XRP a good investment right now?

TL; DR

What is XRP: XRP is a digital asset built for fast, low-cost international payments. It runs on the XRP Ledger and is used by Ripple for its On-Demand Liquidity (ODL) service. Unlike Bitcoin, XRP settles transactions in 3-5 seconds with near-zero fees.Why is XRP Dropping: XRP is not actively dropping, but it is struggling to rise. On the monthly chart, XRP has seen six consecutive months of decline. Currently, the price faces an additional supply wall at $1.45. About 1.24 billion XRP were bought in that range, and those holders sell when the price approaches, creating selling pressure that prevents a recovery.Will XRP Go Up: Potentially yes. XRP is trading near $1.43 and showing its best weekly performance since September 2025. If the price breaks above the $1.45 resistance, analysts expect a move toward $1.90, supported by strong institutional demand.Is XRP a Good Investment: The answer is not simple. Short-term traders may see opportunity in the coming volatility spike. Long-term investors face a bigger question that depends on one key regulatory event. However, the data reveals a surprising signal that most retail buyers are missing right now. To understand whether XRP is a smart buy or a trap at $1.43, you will need to read the full analysis below.What is XRP? A Digital Asset for Global Settlement

Before analyzing the charts, it is crucial to understand the asset in question. What is XRP? Unlike Bitcoin, which was designed as a decentralized digital gold, XRP operates on the XRP Ledger (XRPL). It was created to facilitate fast, low-cost international payments. Traditional bank transfers take days and incur high fees. XRP transactions settle in 3-5 seconds, costing fractions of a penny.

Ripple, the company associated with XRP, uses this asset for its "On-Demand Liquidity" (ODL) service. Banks and financial institutions use ODL to source liquidity during cross-border transactions without pre-funding accounts. This utility is the primary driver for institutional interest. Recently, the network hit a milestone of over 8 million active wallets, signaling growing usage despite recent price stagnation . Furthermore, Ripple is proactively preparing for the future, releasing a four-stage roadmap to make the XRPL "quantum-resistant," aiming to secure the ledger against future quantum computing threats by 2028 .

XRP Price Analysis: The Battle for $1.45

The XRP price trend over the last month tells a story of exhaustion followed by cautious recovery. On the monthly chart, XRP experienced six consecutive months of decline. However, April shows signs of a bottoming process. Weekly charts reinforce this view: after four weeks of lower closes, the last two weeks have seen small rebounds.

According to data from April 22, 2026, XRP is trading at approximately $1.44. Over the last seven days, XRP has outperformed both Bitcoin and Ethereum, rising 6.7% while the broader market rose only 3.2%. Spot trading volume surged 23% to $3.79 billion, and derivative markets saw $40 billion in futures volume on a single day.

Despite this, the price remains 60% below its July 2025 high of $3.65. The current technical picture shows a "low volatility grind" higher. The 20-day EMA is at $1.3924, and the 50-day EMA is at $1.4119, both acting as support . However, the immediate hurdle is the $1.45 resistance level. This price point has rejected every rally attempt in 2026.

Why is XRP Dropping? And Will XRP Go Up?

The primary reason for the recent "drop" (or lack of upward momentum) is not active selling, but rather the "supply wall." Data indicates that roughly 1.24 billion XRP tokens were purchased by investors in the $1.45 to $1.47 range. These investors have been waiting months to "break even." Every time the price approaches $1.45, these holders sell to exit their positions, creating a massive wall that retail buying cannot easily absorb.

However, the underlying momentum is shifting. Analysts suggest a xrp volatility spike imminent because the absorption capacity of buyers is increasing. Historically, when exchange reserves are high but the price refuses to drop significantly, it signals that buyers are absorbing the supply. The price has held above $1.39 despite the overhang, which is a sign of relative strength.

So, will XRP go up? Yes, potentially. But it needs a catalyst, if the price closes a daily candle above $1.45. If that happens, the next targets are $1.60 to $1.65, and eventually $1.90 .

XRP Exchange Netflow and XRP ETF Netflow: A Tale of Two Markets

The current market dynamic is best understood by looking at two opposing data streams: XRP Exchange netflow and XRP ETF flows.

Exchange Dynamics (Retail / Whales):

Data shows a complex pattern of "large inflows and increasing reserves." Recently, a Ripple-associated wallet moved 75 million XRP (approx. $108 million) to Coinbase. This initially looks like a dump, but context matters. These transfers are likely to provide liquidity for Ripple’s ODL business, not necessarily spot market selling. However, the result is that exchange reserves have climbed to 2.76 billion XRP .

The Good News: While reserves are high, the rate of increase is slowing. Specifically, "whale" transfers to exchanges have dropped 98% from their April 11 peak. The Binance reserve has slightly decreased from 27.7 to 27.6 billion. The aggressive selling from large holders appears to have stopped.

Institutional Dynamics (ETF):

While whales were sending coins to exchanges, institutions were buying XRP ETF products. XRP ETF net flow is strongly positive.

US-listed XRP ETFs recorded four consecutive days of inflows totaling $38.86 million recently .The weekly inflow for mid-April hit $119.6 million, a multi-month high .Cumulative net inflows stand at $12.8 billion, with Assets Under Management (AUM) at roughly $10.8 billion.Analyzing the Divergence: Why Both Flows Are Positive

It seems contradictory that exchange reserves are high (suggesting selling) while ETFs are buying (suggesting buying). However, this phenomenon reveals the current market structure.

Different Investor Profiles: The exchange inflows likely come from short-term traders, market makers, or Ripple itself providing ODL liquidity. These are "hot" coins ready to be sold. The ETF inflows represent "sticky" capital. Institutions buying ETFs are typically long-term holders (LTHs) or asset managers who do not day-trade. They are removing liquidity from the spot market by buying through custodians.The "De-risking" Trade: Sophisticated funds might be engaging in basis trading. They buy the ETF (taking a long position) while simultaneously shorting XRP futures or selling spot inventory to capture the funding rate. This keeps the price stable while volume increases.Absorption: The most likely scenario is that the market is simply absorbing the excess supply. The fact that the price is stable ($1.43) and not collapsing to $1.20 despite 2.76 billion coins sitting on exchanges is a massive win for the bulls. The ETF inflows are acting as a sponge, soaking up the selling pressure from the ODL wallets.The Regulatory Catalyst: The SEC and the CLARITY Act

Fundamentally, the recent price action cannot be separated from regulation. For years, the primary answer was the SEC lawsuit. That narrative is dying.

Ripple CEO Brad Garlinghouse recently praised SEC Chair Paul Atkins as "a breath of fresh air and sanity" . This regulatory thaw is critical. The SEC is reportedly considering dropping the long-standing lawsuit, and five XRP ETF applications are awaiting review.

The major catalyst on the horizon is the CLARITY Act. A Senate markup is expected before the end of April. Standard Chartered analysts project that if the bill advances, it could unlock $4 to $8 billion in institutional flows . Polymarket gives the bill a 60-66% chance of passing in 2026. If the CLARITY Act classifies XRP as a non-security (commodity), the institutional floodgates will open, likely overwhelming the $1.45 supply wall instantly.

Is XRP a Good Investment in 2026?

Given all this data, is XRP a good investment? The answer depends entirely on your risk tolerance and time horizon.

The Bull Case (Why it is a good investment): The risk/reward ratio is asymmetrical to the upside. The price is near multi-year lows relative to its utility. Whale selling has stopped, ETF demand is rising, and the network is expanding (8 million wallets, quantum resistance roadmap). If the CLARITY Act passes, XRP could realistically trade between $1.60 and $1.80 in the short term, with a potential run to $3.00+ if the lawsuit is officially dropped.The Risk Case (Why it is NOT a good investment): There is a clear resistance wall at $1.45. If the CLARITY Act fails or is delayed past May (due to midterm election dynamics), the "buy the rumor, sell the news" dynamic could reverse. If the price fails to break $1.45 and loses support at $1.33, a drop back to $1.15 is technically possible .

Verdict: XRP is a speculative buy for traders looking for a volatility spike. It is a hold for current investors. For new investors, it is only a good investment if you believe in regulatory clarity within the next 30 days. Technically, waiting for a confirmed break above $1.55 (to avoid the fakeout) is safer than buying at $1.43.

FAQ

Q: Will XRP go up if the CLARITY Act passes?

A: Yes, historically. Analysts predict that if the CLARITY Act passes, signaling that XRP is a commodity, it would remove the regulatory overhang. This could trigger a surge in institutional buying, pushing the price from the current $1.43 range to test the $1.80 - $2.00 resistance levels quickly.

Q: Why is XRP dropping when Bitcoin is going up?

A: XRP has specific supply dynamics. Unlike Bitcoin, which has a fixed supply issuance, XRP faces periodic sell-pressure from Ripple's treasury wallets used to fund ODL (liquidity) services. Additionally, the $1.45 "break-even" wall causes XRP to drop relative to BTC when short-term traders exit.

Q: Is a volatility spike imminent for XRP?

A: Yes. The Bollinger Bands on the daily chart are squeezing. The price is stuck between support at $1.33 and resistance at $1.45. Historically, when XRP volume surges 23% in a week (as it did on April 21), it precedes a violent move. The direction depends on whether the $1.45 resistance breaks.

Q: What is the XRP ETF netflow status?

A: As of late April 2026, XRP ETFs are seeing positive netflows. The US ETFs recorded a single week inflow of $119.6 million in mid-April. Cumulative inflows are strong at $12.8 billion, indicating that institutions are accumulating during this dip, which is a long-term bullish signal for price stabilization.

Q: Is XRP a good investment for beginners?

A: XRP is less volatile than "meme coins" but more volatile than Bitcoin. For beginners, it is a moderate-risk investment. Its value is tied to real utility (bank payments). However, beginners should wait to see if the price can close a weekly candle above $1.55 before entering, to avoid buying into the current resistance wall.

Disclaimer: None of the information in this article constitutes, or is intended to constitute, investment advice. Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors. Always do your own research.

About WEEX

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