XRP Price Action Turns Bearish on SEC v Ripple Outcome Scenarios

Key ideas:

  • On Monday, XRP fell 0.12%, marking the fourth loss in five sessions.
  • SEC v Ripple uncertainty and broader market bearish sentiment stemming from a NASDAQ pullback weighed on.
  • Technical indicators are bearish, with XRP below the 50-day EMA, indicating a possible return to $0.35.

On Tuesday, XRP rose 0.67%. Reversing a 0.12% drop on Monday, XRP ended the day at $0.39204. XRP ended the day at $0.39 for the first time in four sessions while visiting below $0.39 for the fifth session in a row.

A busy morning saw XRP slide to a low of $0.38093 in the late morning. XRP fell through the first major support level (S1) at $0.3819. However, finding support in the afternoon, XRP rallied to a late high of $0.39251. Failing to reach the first major resistance level (R1) at $0.3959, XRP pulled back to end the day at $0.39204.

SEC v Ripple Case Nervousness Leaves XRP on the Defensive

It was a quiet Tuesday session, with no updates on the current session. SEC vs. Ripple case to influence. The lack of news left XRP on the back foot, with uncertainty over the outcome of the SEC v Ripple continuing to test buyers’ appetites.

With no updates, investors considered the potential outcomes of the case, which may not become apparent until early 2023.

Monday, John Deaton said,

“Of course, it is possible that Judge Torres could split the proverbial baby and rule that Ripple, at some point, ‘offered’ an unregistered security, but the token itself is not, nor are secondary market sales. independent of Ripple. Either way, the Ripple/XRP case is ground zero.”

Following the collapse of FTX, Gary Gensler and the SEC will be under more pressure to win the case. The implications of the result will also be far-reaching, with an SEC victory allowing it to continue regulating via the app.

On paper, the chances of the SEC settling the case seem slim. However, documents related to Hinman’s speech remain a factor in the case and could still prove critical.

XRP Price Action

At the time of writing, XRP was down 1.69% to $0.38541. A mixed start to the day saw XRP rally to an early high of $0.39233 before falling to a low of $0.38519.

XRPUSD 071222 Daily Chart

technical indicators

XRP needs to move through $0.3885 pivot to target the first major resistance level (R1) at $0.3961. A move through Tuesday’s high of $0.39251 would indicate a bullish session.

In the event of a prolonged rally, the bulls would run into the second major resistance level (R2) at $0.4001. The third main resistance level (R3) sits at $0.4117.

Failure to move through the pivot would leave the first major support level (S1) at $0.3845 up for grabs. However, barring a prolonged sell-off, XRP should avoid going below $0.3750. The second major support level (S2) at $0.3769 should cap the downside. The third major support level (S3) sits at $0.3653.

Discussions related to the drafted reports of the response to the summary judgment and the updates of the SEC v Ripple case will influence.

XRPUSD 071222 Hourly Chart

the EMA and the 4-hour candlestick chart (below) sent a bearish signal.

At the time of writing, XRP was trading below the 50-day EMA, currently at $0.39058. The 50 day EMA turned back from the 100 day EMA, and the 100 day EMA turned back from the 200 day EMA. The signals were bearish.

A break of the 50-day EMA ($0.39058) and the 100-day EMA ($0.39152) would support a move through R1 ($0.3961) to target R2 ($0.4001). The 200 day EMA sits at ($0.40018). However, if it doesn’t go beyond 50 days ($0.39058), that would leave S1 ($0.3845) and less than $0.38 up for grabs.

XRPUSD 071222 4-hour chart