XRP Bears to Target Sub-$0.40 on SEC v Ripple Silence and Fed Fear

Key Insights:

• On Friday, XRP rose by 0.53% to end the day at $0.41207.
• There were no updates from the SEC v Ripple case to provide direction, leaving XRP in the hands of the broader crypto market.
• The technical indicators remain bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.

On Friday, XRP rose by 0.53%. Partially reversing a 0.86% loss from Thursday, XRP ended the day at $0.41207. XRP avoided a return to sub-$0.40 for the second consecutive session.

After a choppy start to the day, XRP rose to a late morning high of $0.41354. Falling short of the First Major Resistance Level (R1) at $0.4166, XRP fell to an early afternoon low of $0.40558. Finding support at the First Major Support Level (S1) at $0.4059, XRP bounced back to end the day in positive territory.

XRP Sits in the Hands of the Broader Crypto Market

It was a quiet Friday session, with no updates from the SEC v Ripple case to provide direction. A lack of updates left investors to consider the SEC v LBRY case, which raised hopes of a favorable outcome.

The presiding judge denied an SEC attempt to block the sale of LBC tokens, with the SEC lawyers conceding that secondary market sales of LBC tokens do not constitute a security.

While investors remain hopeful of a favorable outcome to the SEC v Ripple case, an element of uncertainty is ever present that will likely continue to peg XRP back from a return to $0.50. However, a ruling against the SEC motion to redact content from the William Hinman documents could tilt the scales in Ripple’s favor.

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.

Today, a lack of updates from the SEC v Ripple case will leave XRP in the hands of the broader crypto market. Investors need to monitor the crypto news wires for Silvergate, FTX, and Genesis updates. Regulatory chatter will also influence.

XRP Price Action

At the time of writing, XRP was down 0.84% to $0.40859. A mixed start to the day saw XRP rise to an early high of $0.41179 before falling to a low of $0.40859.

Technical Indicators

XRP needs to move through the $0.4104 pivot to target the First Major Resistance Level (R1) at $0.4152. A return to $0.4150 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an SEC v Ripple-fueled extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4184 and resistance at $0.42. The Third Major Resistance Level (R3) sits at $0.4263.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4073 in play. However, barring a broad-based crypto sell-off, XRP should avoid sub-$0.40. The Second Major Support Level (S2) at $0.4024 should limit the downside. The Third Major Support Level (S3) sits at $0.3945.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.40777. The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

A hold above the 50-day EMA ($0.40777) would support a breakout from R1 ($0.4152) to target R2 ($0.4184) and $0.42. However, a fall through the 50-day EMA ($0.40777) and S1 ($0.4063) would give the bears a run at the 100-day EMA ($0.40269) and S2 ($0.4024). A fall through the 50-day EMA would send a bearish signal.