XRP Bears to Target a Return to Sub-$0.38 on SEC v Ripple Uncertainty

Key Insights:

• On Friday, XRP fell by 1.41% to end the day at $0.38887.
• US economic indicators and the NASDAQ weighed, with no updates from the Sec v Ripple case to distract investors.
• The technical indicators turned bearish, with XRP below the 50-day EMA, signaling a possible return to $0.35.

On Friday, XRP fell by 1.41%. Partially reversing a 2.94% gain from Thursday, XRP ended the day at $0.38887. Notably, XRP fell short of $0.40 for the eighth consecutive session.

Bearish through the day, XRP fell from an early high of $0.39494 to an early afternoon low of $0.38476. XRP fell through the First Major Support Level (S1) at $0.38650 before briefly revisiting $0.39 levels. However, a bearish final hour saw XRP end the day at sub-$0.39 for the second time in three sessions.

US Economic Indicators and the NASDAQ Send XRP into the Red

US economic indicators and the NASDAQ left XRP in negative territory. Wholesale inflation figures for November came in hotter than forecasts, weighing on riskier assets. The Producer Price figures sent XRP to the early afternoon session low before support kicked in.

A pickup in consumer sentiment and falling inflation expectations cushioned the fall. The NASDAQ Composite Index fell by 0.70%.

However, XRP struggled throughout the session. Uncertainty about the outcome of the SEC v Ripple case tested buyer appetite.

There were no material updates to distract investors, who are currently waiting for the Court ruling on the Summary Judgment Reply briefs.

On Friday, both parties jointly requested that the Court set a deadline of January 4 for any non-parties to move to seal portions of the Summary Judgment materials. As part of the request, all parties and non-parties must file oppositions by January 18.

The timelines affirm that the case will drag into 2023, barring an unexpected settlement.

XRP Price Action

At the time of writing, XRP was down 0.32% to $0.38764. A bearish start to the day saw XRP fall from an early high of $0.38901 to a low of $0.38757.

Technical Indicators

XRP needs to move through the $0.3895 pivot to target the First Major Resistance Level (R1) at $0.3943 and the Friday high of $0.39494. A return to $0.3950 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.3997 and $0.40. The Third Major Resistance Level (R3) sits at $0.4099.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3841 in play. However, barring an extended sell-off, XRP should avoid sub-$0.38 and the Second Major Support Level (S2) at $0.3793. The Third Major Support Level (S3) sits at $0.3692.

Chatter relating to the redacted Summary Judgment Reply briefs and updates from the SEC v Ripple case will continue to influence.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.38894. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day ($0.38894) and the 100-day ($0.39018) EMAs would support a breakout from R1 ($0.3943) to target the 200-day EMA ($0.39800) and R2 ($0.3997). However, failure to move through the 50-day ($0.38894) would bring S1 ($0.3841) into play.