XRP Bears to Target Sub-$0.3700 as the Fed Policy Decision Nears

Key Insights:

• On Sunday, XRP fell by 1.35%, extending the losing streak to three sessions.
• Investor angst towards the US CPI Report and the Fed monetary policy decision on Wednesday weighed.
• The technical indicators remain bearish, with XRP below the 50-day EMA, signaling a possible return to $0.35.

On Sunday, XRP fell by 1.35%. Following a 0.61% loss on Saturday, XRP ended the day at $0.38130. XRP fell short of $0.39 for the second time in eighteen sessions.

A bullish start to the day saw XRP rise to an early high of $0.38863. Coming up against the First Major Resistance Level (R1) at $0.3885, XRP slid to a late low of $0.37827. XRP fell through the day’s Major Support Levels. However, finding late support, XRP broke back through the Third Major Support Level (S3) at $0.3801 to end the day at $0.3813.

Binance and Fed Anxiety Left XRP in the Hands of Crypto Market Sentiment

It was a quiet Sunday session, with no updates from the ongoing SEC v Ripple case to distract investors. While there were no updates, speculative rumors did the rounds, with Cardano founder Charles Hoskinson speaking about the SEC v Ripple case concluding this week.

During an Ask Me Anything (AMA) YouTube session, Hoskinson said,

“I heard rumors that the Ripple case will be settled on December 15, and that could have catastrophic implications for the industry, one way or the other. But you know, just keep moving forward. Regardless of what happens, it’s a decentralized ecosystem that you guys control.”

However, investors remained transfixed on Fed monetary policy while awaiting the Court decision on the Summary Judgment Reply briefs. Following positive US economic indicators, including the US Jobs Report and ISM Non-Manufacturing PMI, Fed fear has resurfaced ahead of tomorrow’s US CPI report.

A hotter-than-expected annual inflation rate could refuel bets of a 75-basis point interest rate hike. Hawkish bets would pressure the appetite for riskier assets amidst increasing fear of an economic recession.

Away from the Fed and the ongoing SEC v Ripple case, investors also need to monitor updates from Binance on the reports of unusual activity on the platform.

XRP Price Action

At the time of writing, XRP was up 0.18% to $0.38199. A mixed start to the day saw XRP fall to an early low of $0.38000 before rising to a high of $0.38265.

Technical Indicators

XRP needs to move through the $0.3827 pivot to target the First Major Resistance Level (R1) at $0.3872 and the Sunday high of $0.38863. A return to $0.3850 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 $0.3931 to bring $0.40 into view. The Third Major Resistance Level (R3) sits at $0.4035.

Failure to move through the pivot would give the bears a run at the First Major Support Level (S1) at $0.3768. However, barring an extended sell-off, XRP should avoid sub-$0.37. The Second Major Support Level (S2) at $0.3724 should limit the downside. The Third Major Support Level (S3) sits at $0.3620.

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 $0.38781. 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 R1 ($0.3872) and the 50-day ($0.38781) and 100-day ($0.38931) EMAs would give the bulls a run at R2 ($0.3931). However, failure to move through the 50-day ($0.38781) would leave $0.35 in view.