Signal price

XRP Price Pressure Spikes on US CPI and SEC v Ripple Updates

Key ideas:

  • On Tuesday, XRP slipped 7.62% to end the session at $0.3325.
  • Updates from the SEC case against Ripple took a back seat, with August’s US CPI report sending riskier assets into deep red.
  • However, the technical indicators are bearish, with XRP currently trading below the 100-day EMA, supporting a move back below $0.30.

On Tuesday, XRP slid 7.62%. Reversing a 1.45% gain from Monday, XRP ended the day at $0.3325.

A bullish morning session saw XRP hit an early morning high of $0.3602. Below the first major resistance level (R1) at $0.3639, XRP retreated to $0.351 ahead of a midday selloff.

In response to the August US CPI report, XRP fell through the major support levels of the day to hit a low of $0.33101. Late in the day, XRP moved back to the third major support level (S3) at $0.3323 to reduce the deficit.

The ongoing SEC updates against Ripple had a moderate impact, with the US CPI report changing bets on Fed monetary policy. While US economic indicators and sentiment towards the influence of the Fed, the SEC case against Ripple remains the main driver.

Despite SEC v Ripple Activity, a decision on the Hinman documents remains elusive

The defendants were in action this week, with Ripple opposite the SEC’s request to seal the identity of its proposed experts.

Defense attorney James Filan also shared news of Judge Torres approving the “proposed joint SEC and Ripple schedule to govern sealing matters relating to upcoming summary judgment motions”.

And overnight, the Ripple defendants deposit, under seal, their motion for summary judgment. The defendants filed the motion for summary judgment without a court ruling on the documents related to Hinman’s speech.

In late July, the SEC filed an objection to a court ruling denying the SEC’s motion to protect documents related to Hinman’s speech under solicitor-client privilege. A decision on the SEC’s objection could come at any time.

For your information, former SEC Corporate Finance Division Director 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.

XRP Price Action

At the time of writing, XRP was up 0.14% at $0.33298. A mixed start to the day saw XRP hit an early high of $0.33405 before falling to a low of $0.33166.

XRPUSD 140922 Daily Chart

Technical indicators

XRP needs to break through the $0.3412 pivot to target the first major resistance level (R1) at $0.3515 and Tuesday’s high of $0.3602.

Following Tuesday’s US CPI report, US stats will need to be crypto-consistent to support a move back to $0.35. In the event of a large-scale crypto rebound, the second major resistance level (R2) at $0.3704 would likely come into play. The third major resistance level (R3) is located at $0.3996.

Any favorable court ruling in the ongoing SEC case against Ripple would support a breakout.

Failing to pivot would leave the first major support level (S1) at $0.3223 in play. Barring another prolonged sell-off, XRP should avoid sub-$0.32 and the second major support level (S2) at $0.3120.

The third major support level (S3) is located at $0.2829.

XRPUSD 140922 Hourly Chart

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

At the time of writing, XRP was trading below the 100-day EMA, currently at $0.34257. This morning, the 50-day EMA crossed the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA. Both signals were negative for prices.

A bullish cross from the 50-day EMA to the 200-day EMA would support a run to R1 ($0.3515). However, XRP should go through the EMAs to aim for a return to $0.35.

If you don’t break through the 100-day EMA ($0.34257), you will leave S1 ($0.3223) in play.

XRPUSD 140922 4 hour chart