XRP Bears to Target Sub-$0.33 as SEC v Ripple Jitters Boil Over

Key Insights:

• On Thursday, XRP slid by 3.86% to end the day at $0.34218.
• XRP bucked the broader market trend, with investor jitters over the SEC v Ripple case sending XRP deep into the red.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.33.

On Thursday, XRP slid by 3.86%. Following a 3.21% loss on Wednesday, XRP ended the day at $0.34218. Significantly, XRP visited sub-$0.34 for the first time since December 21.

A mixed start to the day saw XRP rise to an early high of $0.35756 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.3646, XRP slid to a late low of $0.33653. XRP fell through the First Major Support Level (S1) at $0.3510 and the Second Major Support Level (S2) at $0.3461 to end the day at $0.34218.

There were no updates from the ongoing SEC v Ripple case to influence, leaving investors on a cautious footing.

XRP Finds Little NASDAQ Index Support on SEC v Ripple Jitters

A lack of updates from the SEC v Ripple case left investors jittery about the outcome. The XRP community and the broader crypto market are waiting for two Court rulings that could decide the SEC v Ripple case.

A ruling on the SEC motion to protect the William Hinman speech-related documents and the Court ruling on the Summary Judgment Reply briefs are key.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

A Ripple victory would have significant ramifications for the SEC and could bring the extended crypto winter to an end.

The latest pullback reflects the ever-changing mood of investors. While investors hope for a favorable outcome, the risk of an SEC win remains too great for some.

Today, investors should continue to monitor updates from the SEC v Ripple case. A lack of updates will leave XRP on the back foot. Any upside would likely be limited. External market forces could add further selling pressure. Fed and recession fears will likely remain an influence over the near term.

XRP Price Action

At the time of writing, XRP was down 1.23% to $0.33797. A mixed start to the day saw XRP rise to an early high of $0.34473 before sliding to a low of $0.33416.

Technical Indicators

XRP needs to move through the $0.3454 pivot to target the First Major Resistance Level (R1) at $0.3543 and the Thursday high of $0.35756. A return to $0.35 would support a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3664 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3875.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3333 in play. However, barring an extended sell-off, XRP should avoid sub-$0.3250 and the Second Major Support Level (S2) $0.3244. The Third Major Support Level (S3) sits at $0.3034.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

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 $0.35256. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.35256) would support a breakout from R1 ($0.3543) and the 100-day EMA ($0.35777) to target R2 ($0.3664). However, failure to move through the 50-day EMA ($0.35256) would leave XRP under selling pressure.