- On Monday, XRP rose 3.79% to partially reverse Sunday’s 4.13% decline.
- Bearish sentiment in US equity markets failed to deliver a fourth straight day in the red for XRP.
- Technical indicators remain bearish. With XRP sitting below the 50-day EMA, a move back below $0.30 remains in play.
On Monday, XRP was up 3.79%. Partially reversing a 4.13% drop from Sunday, XRP ended the day at $0.3340.
A bearish start to the day saw XRP drop to an early low of $0.31868. Avoiding the first major support level (S1) at $0.3167, XRP hit a late high of $0.33405. XRP broke through the first major resistance level (R1) at $0.3321 to end the day at $0.3340.
The inability to reach a conclusion in the SEC vs. Ripple case has not deterred dip buyers from providing assistance.
Slow progress in SEC v Ripple and XRP Headwind case
On Monday, the broader crypto market looked beyond Fed Chairman Powell’s Jackson Hole speech. While the NASDAQ 100 saw another loss, XRP and the crypto market were in recovery mode.
There were no US economic indicators or favorable speeches from FOMC members to provide support. However, the advantage came despite the ongoing SEC v Ripple case that has been dragging on since December 2020.
Investors have been waiting for more than four weeks for a court ruling on the SEC’s objection to the court denying the SEC’s motion to protect documents related to Hinman’s speech under solicitor-client privilege. the lawyer.
Former SEC director of the corporate finance division, William Hinman, is a central figure in the SEC case against Ripple. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
Significantly, the SEC filed more than seven motions in an effort to protect the documents. Despite the court rulings, the SEC has yet to share the documents with Ripple’s defense team. Investors expect the SEC to avoid disclosing the content at all costs. Therefore, a court ruling in favor of Ripple could force a settlement, which would be positive for the XRP price.
With a decision likely at any time, XRP will continue to face price pressures and will be below $0.40.
XRP Price Action
At the time of writing, XRP was down 0.20% at $0.33332.
XRP needs to avoid the $0.3289 pivot to target the first major resistance level (R1) at $0.3391 and the $0.34 handle.
XRP will need broader market support for a break from $0.3350.
In the event of an extended crypto rally, XRP would likely test the second major resistance level (R2) at $0.3443 and resistance at $0.3450.
The third major resistance level (R3) is located at $0.3597. While a decision on the Hinman documents would be the main driver, we expect US economic indicators to provide direction later today. JOLT job vacancies and consumer confidence figures are on the agenda.
A drop through the pivot would bring into play the first major support level (S1) at $0.3238. Barring another large-scale crypto selloff, XRP is likely to avoid below $0.32 and the second major support level (S2) at $0.3135.
The third major support level (S3) is located at $0.2982.
The EMAs 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 $0.33913. The 100-day EMA retreated from the 200-day EMA, with the 50-day EMA declining from the 200-day EMA. XRP price signals were bearish.
A further pullback of the 50-day EMA from the 200-day EMA would bring major support levels into play. However, an XRP move through R1 ($0.3391) and the 50-day EMA ($0.33913) would give the bulls a run to R2 ($0.3443) and the 100-day EMA ($0.3474). ).