XRP Bears to Target Sub-$0.33 on US Stats and SEC v Ripple Uncertainty

Key Insights:

• On Thursday, XRP hit reverse, sliding by 2.80% to end the day at $0.33807
• A lack of updates from the SEC v Ripple case left investors to lock in profits on a bearish crypto market session.
• 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 2.80%. Reversing a 1.21% gain from Wednesday, XRP ended the day at $0.33807. Significantly, XRP ended the day at sub-$0.34 for the first time in four sessions.

Tracking the broader crypto market, XRP rose to an early morning high of $0.34832. Coming up short of the First Major Resistance Level (R1) at $0.3523, XRP slid to a final-hour low of $0.33385. XRP fell through the First Major Support Level (S1) at $0.3429 and briefly through the Second Major Support Level (S2) at $0.3370 before a late partial recovery to end the day at $0.33807.

There were no updates from the ongoing SEC v Ripple case to distract investors from the US economic calendar.

XRP Succumbs to Bearish US Economic Indicators and a NASDAQ Index Slide

US economic indicators and the NASDAQ Index sent XRP into reverse on Thursday. Ahead of today’s US Jobs Report, better-than-expected ADP nonfarm employment change and jobless claim figures reignited Fed fear.

Today, the market focus will shift to the US jobs report that could allow the Fed to deliver another hawkish interest rate hike in December.

However, while today’s jobs report will have a material impact on the global financial markets, updates from the SEC v Ripple case remain the key. Two pending Court rulings could decide the outcome of the SEC v Ripple case.

Investors await a ruling on the SEC motion to redact content from the William Hinman speech-related documents, while the parties also await the Court ruling on the Summary Judgment Reply briefs.

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.

XRP Price Action

At the time of writing, XRP was up 0.69% to $0.34041. A mixed start to the day saw XRP fall to an early low of $0.33770 before rising to a high of $0.34041.

Technical Indicators

XRP needs to avoid a fall through the $0.3401 pivot to target the First Major Resistance Level (R1) at $0.3463 and the Thursday high of $0.34832. A return to $0.3450 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3546 and resistance at $0.36. The Third Major Resistance Level (R3) sits at $0.3690.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3318 into play. However, barring an extended sell-off, XRP should avoid sub-$0.3250. The Second Major Support Level (S2) at $0.3256 should limit the downside. The Third Major Support Level (S3) sits at $0.3111.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels. A lack of Court rulings would leave US stats 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 $0.34505. The 50-day EMA fell 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 EMA ($0.34505) would support a breakout from R1 ($0.3463) to target the 100-day ($0.34951) and R2 ($0.3546). However, failure to move through the 50-day EMA ($0.34505) would leave XRP under pressure.