Advertisement
Advertisement

XRP Bulls Eye a Return to $0.70 Despite Lingering SEC Uncertainty

By:
Bob Mason

After a bullish Tuesday session, XRP was back in the red this morning. While SEC v Ripple-related chatter remains the focal point, ETF news will influence.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Tuesday, XRP gained 2.95% to end the day at $0.6419.
  • US bank downgrades, ETF updates, and William Himan-related chatter delivered a bullish session.
  • However, the shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Tuesday, XRP gained 2.95%. After ending the Monday session flat, XRP ended the day at $0.6419. XRP returned to the $0.64 handle for the first time in four sessions.

Weekly Chart sends bullish price signals.
XRPUSD 090823 Weekly Chart

XRP Price Action

This morning, XRP was down 0.08% to $0.6414. A range-bound start to the day saw XRP rise to an early high of $0.6419 before easing back.

Daily Chart

The Daily Chart showed XRP/USD sitting at the lower level of the $0.6417 – $0.6530 resistance band. However, XRP held above the 50-day ($0.6256) and 200-day ($0.5171) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA, a bullish price signal.

However, looking at the 14-Daily RSI, the 46.04 reading sends bearish XRP price signals, signaling a fall through the 50-day EMA ($0.6256) to bring the $0.5900 – $0.5750 support band into play. However, a hold above the 50-day EMA ($0.6256) would support a breakout from the $0.6417 – $0.6530 resistance band.

XRP Daily Chart sends bullish price signals.
XRPUSD 090823 Daily Chart

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD sits at the lower level of the $0.6417 – $0.6530 resistance band, with the bears eyeing the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6494) and 200-day ($0.6485) EMAs, sending bearish near and longer-term price signals. The 50-day EMA converged on the 200-day EMA, signaling a fall toward the $0.5900 – $0.5750 support band. However, an XRP move through the 0.6417 – $0.6530 resistance band and the EMAs would give the bulls a run at $0.70.

The 55.00 14-4H RSI reading reflects bullish sentiment, with buying pressure outweighing selling pressure. Significantly, the RSI signals a move through the EMAs and the $0.6417 – $0.6530 resistance band to target $0.70.

XRP 4-Hourly Chart sends bearish near-term price signals.
XRPUSD 090823 4 Hourly Chart

Bank Downgrades, ETF News, and William Hinman Chatter Delivered Support

ETF-related chatter delivered XRP and the broader market with price support on Tuesday. The SEC deadline to approve or decline the ARK Invest spot BTC ETF is August 13. While Cathie Wood of ARK Invest expects the SEC to break the deadline, the Ark Invest CEO expects the SEC to deliver multiple approvals. Approvals should lead to a significant influx of sticky institutional money.

The SEC approval of one, some, or all of the spot BTC ETF applications could significantly alter investor sentiment toward the US digital asset space and kickstart the next crypto bull run.

News of Moody’s cutting the credit ratings of several small to medium-sized US banks and threatening to downgrade larger US banks on weaker profitability and liquidity also provided support.

However, SEC v Ripple case-related chatter also influenced investor sentiment.

Ripple Chief Legal Officer Stuart Alderoty targeted Bill Hinman over the infamous Hinman speech, saying,

“Crypto critic/x-SEC official John Reed Stark says there should be an investigation into Bill Hinman. This is broader than Ripple – there could potentially be serious conflicts of interest by a gov official. An investigation will either put it to rest or hold folks accountable.”

Alderoty shared an excerpt that read,

“Yes, I have read that Bill Hinman might have acted unethically or even unlawfully, at least according to some reports. The FBI should investigate the so-called Hinman emails, and if evidence shows unlawful conduct, DOJ should prosecute. But Hinman’s conduct is a weak deflection, a total red herring, and has little to do with the applicability of the securities laws.”

Judge Torres did not focus on the Hinman documents but applied the Howey Test.

The Day Ahead

SEC v Ripple case-related chatter will remain the focal point, with an SEC appeal of the Judge Torres ruling likely to weigh on investor sentiment.

However, investors should continue to track SEC activity and US lawmaker chatter. ETF, Binance, and Coinbase-related news also need consideration.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

Did you find this article useful?

Advertisement