XRP Bears Target Sub-$0.60 as Judge Rakoff Critisism Resonates

Bob Mason
Updated: Aug 5, 2023, 04:01 GMT+00:00

XRP saw red on Friday, with a return to sub-$0.62 raising the prospects of a full retrace of the SEC v Ripple Court Ruling breakout.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Friday, XRP extended the losing streak to three sessions, sliding by 4.24% to end the day at $0.6350.
  • SEC v Ripple Court ruling scrutiny and the US Jobs Report tested buyer appetite.
  • The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Friday, XRP slid by 4.24%. Following a 3.18% loss on Thursday, XRP ended the day at $0.6350. XRP visited sub-$0.62 for the first time since the SEC v Ripple Court ruling.

Weekly Chart price signals remain bullish.
XRPUSD 050823 Weekly Chart

XRP Price Action

This morning, XRP was down 2.22%. A bearish start to the day saw XRP fall from an early high of $0.6352 to a low of $0.6107.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6530 – $0.6417 resistance band and falling through the 50-day EMA ($0.6241). However, XRP remained above the 200-day EMA ($0.5139), sending bearish near-term but bullish longer-term price signals.

Notably, the 50-day EMA narrowed on the 200-day EMA, affirming the bearish market sentiment.

Looking at the 14-Daily RSI, the 41.34 reading sends bearish XRP price signals, signaling a fall through the $0.5900 – $0.5750 support band to bring the 200-day EMA ($0.5139) into view.

XRP Daily Chart sends mixed price signals.
XRPUSD 050823 Daily Chart

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6860) and 200-day ($0.6545) EMAs on three days in the red, sending bearish near and longer-term price signals. The 50-day EMA narrowed on the 200-day EMA, signaling a fall toward the $0.5900 – $0.5750 support band. However, an XRP move through the 0.6417 – $0.6530 resistance band and the 200-day EMA ($0.6545) would give the bulls a run at the 50-day EMA ($0.6860).

The 20.84 14-4H RSI reading shows XRP in oversold territory, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a fall through the $0.5900 – $0.5750 support band.

4-Hourly Chart sends bearish price signals.
XRPUSD 050823 4 Hourly Chart

XRP Suffers Over SEC v Ripple Ruling Scrutiny

It was a busy Friday, with the all-important US Jobs Report giving the Fed more mixed signals to consider. A fall in the US unemployment rate and steady wage growth contrasted with a weaker-than-expected increase in nonfarm payrolls.

Despite the fall in the unemployment rate and a 4.4% increase in the average hourly earnings year-over-year, nonfarm payrolls increased just 187k in July, signaling a softening labor market.

Updates from the Terraform Labs case also weighed on XRP and the broader crypto market. Investors responded further to presiding Judge Rakoff’s references to the Judge Torres Court ruling. This week, Judge Rakoff questioned the Judge Torres ruling, raising market bets on an SEC appeal.

The Day Ahead

It is a quiet day ahead for the crypto market, with no economic indicators to influence. However, investors must continue to monitor the crypto news wires for price-moving events.

SEC v Ripple Court ruling-related chatter will remain the focal point. However, investors should continue to monitor SEC activity and US lawmaker chatter. The lack of progress toward a US crypto regulatory framework supporting innovation while protecting investors would be a bearish scenario.

However, Terra Labs v SEC, ETF, Binance, and Coinbase-related news also need consideration.


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.