XRP Bears Target Sub-$0.48 on Lengthy SEC v Ripple Court Silence

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Published: Jun 24, 2023, 02:20 UTC

XRP reversed Friday's gains this morning, with investor angst resurfacing over the SEC v Ripple case. A ruling could come at any time, making investors edgy.

Key Insights:

On Friday, XRP trailed the broader crypto market, gaining 0.36% to end the day at $0.49621.
News of the SEC approving the Volatility Shares Trust 2x Bitcoin Strategy ETF provided support, while SEC v Ripple silence was a drag.
However, the technical indicators turned bearish, signaling a return to sub-$0.48.

On Friday, XRP gained 0.36%. Partially reversing a 1.13% fall from Thursday, XRP ended the day at $0.49621. Significantly, XRP avoided sub-$0.48 for the third consecutive session.

After a mixed morning, XRP fell to an early afternoon low of $0.48404. Steering clear of the First Major Support Level (S1) at $0.4757, XRP rose to an early evening high of $0.50248. However, falling short of the First Major Resistance Level (R1) at $0.5198, XRP eased back to end the day at $0.49621.

Court Silence in the SEC v Ripple Capped Gains

It was another quiet session on Friday. There were no updates from the ongoing SEC v Ripple case to influence investor sentiment. The lack of Court updates was a drag, with investor jitters over the case resurfacing.

With a Court ruling likely at any time, investor caution is evident despite the latest shift in sentiment toward BTC and the broader crypto market.

On Friday, news hit the wires of the SEC approving the Volatility Shares Trust 2x Bitcoin Strategy ETF. The unexpected news delivered a broad-based crypto rally. However, XRP trailed, with the SEC v Ripple case heading into July.

Adding to the bearish sentiment is the increased adoption of Central Bank Digital Currencies (CBDCs) that some consider a viable alternative to using the Ripple platform and XRP for remittances.

However, Ripple is helping central banks and financial institutions to launch CBDCs and bank-backed digital currencies. Ripple’s collaboration should put the platform in a solid position and be XRP price positive despite the anticipated increase in CBDCs and bank-backed alternatives.

The Day Ahead

It is a quiet Saturday session, with no US economic indicators to distract investors. However, investors should monitor the crypto news wires for events that could move the dial.

Beyond SEC v Ripple, SEC v Binance, and Coinbase (COIN) case-related news, investors should look out for US lawmakers and regulatory chatter. XRP remains more sensitive to regulatory activity and lawmaker commentary than its top ten peers.

XRP Price Action

At the time of writing, XRP was down 1.12% to $0.49063. A bearish start to the day saw XRP fall from an opening price of $0.49628 to a low of $0.48930.

XRPUSD 240623 Daily Chart

Technical Indicators

The EMAs and the 4-hourly candlestick chart (below) sent bearish signals.

At the time of writing, XRP sat below the 200-day EMA, currently at $0.49225. The 50-day EMA narrowed to the 200-day EMA, with the 100-day EMA closing in on the 50-day EMA. The EMAs delivered bearish signals.

A move through the EMAs would support a breakout from R1 ($0.5044) to target R2 ($0.5127) and the week high of $0.52638. However, failure to move through the 50-day EMA ($0.49475) would leave S1 ($0.4860) and sub-$0.48 Major Support Levels in view. A move through the 50-day EMA ($0.49475) would send a bullish signal.

XRPUSD 240623 4 Hourly Chart

Resistance & Support Levels

R1 – $	0.5044	S1 – $	0.4860
R2 – $	0.5127	S2 – $	0.4758
R3 – $	0.5311	S3 – $	0.4574

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.