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XRP Bulls Face Sub-$0.62 While Awaiting a Ripple Court Filing

By:
Bob Mason

XRP continues to be at the mercy of the SEC. Investors should look out for a Ripple legal response to the SEC motion to appeal that could come at any time.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • XRP saw red on Sunday, falling 0.32% to end the day at $0.6253.
  • It could be a busy start to the week, with investors awaiting a Ripple response filing to the SEC motion to request an interlocutory appeal.
  • The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Sunday, XRP fell by 0.32%. Following a 0.60% loss on Saturday, XRP ended the week up 0.29% to $0.6253. Despite the bearish session, XRP avoided sub-$0.62 for the fifth consecutive session.

Weekly Chart sends bullish price signals.
XRPUSD 140823 Weekly Chart

XRP Price Action

This morning, XRP was up 0.03% to $0.6255.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6417 – $0.6530 resistance band. However, XRP fell through the 50-day EMA ($0.6262) while holding above the 200-day ($0.5240), sending bearish near-term but bullish longer-term price signals.

Notably, the 50-day EMA narrowed to the 200-day EMA, a bearish price signal.

Looking at the 14-Daily RSI, the 42.59 reading reflects bearish sentiment, signaling a fall to the upper level of the $0.5900 – $0.5750 support band. However, an XRP move through the 50-day EMA ($0.6262) would support a breakout from the $0.6417 – $0.6530 resistance band to retarget $0.66.

XRP Daily Chart sends mixed price signals.
XRPUSD 140823 Daily Chart

4-Hourly Chart

Looking at the 4-Hourly Chart, XRP sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing sub-$0.60 and the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6373) and 200-day ($0.6446) EMAs, sending bearish near and longer-term price signals. The 50-day EMA eased back from the 200-day EMA, a bearish price signal, bringing the $0.5900 – $0.5750 support band into play. However, an XRP move through the EMAs and the 0.6417 – $0.6530 resistance band would give the bulls a run at $0.66.

The 43.80 14-4H RSI reading reflects bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI signals a return to sub-$0.60 to give the bears a run at the $0.5900 – $0.5750 support band.

4-Hourly Chart affirms bearish near-term price signals.
XRPUSD 140823 4 Hourly Chart

SEC v Ripple Appeal Chatter Leaves XRP Flat Ahead of Court Filings

It was a quiet Sunday session. SEC plans to appeal the Court ruling on Programmatic Sales remained the focal point.

Reports of the SEC misusing Ripple’s quarterly XRP Markets Report continued to do the rounds on Sunday.

Earlier this month, Ripple CEO Brad Garlinghouse had this to say about SEC tactics in the SEC v Ripple case,

“We began these reports to voluntarily provide updates given our XRP holdings. Sadly, they were used against us in the SEC lawsuit – however, we remain steadfast in our commitment to transparency, but I suspect they’re going to look a bit different moving forward.”

In the Q2 2023 Report, Ripple focused on the SEC v Ripple case, the Court ruling in programmatic sales, and misconceptions. The report stated,

“While published in a good faith effort at transparency, these quarterly reports have been weaponized against the Company by the SEC. Ironic for an agency that touts transparency and disclosure.”

In response to the SEC motion for leave to file an interlocutory appeal, Ripple Chief Legal Officer Stuart said,

“The SEC does not have the right to appeal just yet, which is why they are asking permission to file an interlocutory appeal. Ripple will file its response with the Court next week. Stay tuned.”

Investors will await the Ripple response to the motion that could come as early as today.

Judge Torres will then rule on the motion, with uncertainty over the Court decision leaving XRP in limbo. Amicus Curiae attorney John E Deaton shared his view on the filing, saying,

“I expect Judge Torres to grant this motion. This will then allow her to even more fully explain her reasoning and to also further make it appeal-proof. It will also allow her an opportunity to address anything Rakoff said.”

Judge Rakoff said that Judge Torres made a mistake in the SEC v Ripple Court ruling when declaring that XRP was not a security when sold on exchanges. Rakoff believed that there is no difference between stocks and institutional sales in terms of being a security.

The Day Ahead

It could be a busy start to the week. The SEC v Ripple case remains the focal point, with a Ripple response to the SEC motion likely to move the dial. However, it is uncertain how long it would take for Judge Torres to decide on the SEC motion. A lengthy decision-making process could leave XRP on the back foot.

Investors should also monitor SEC activity and US lawmaker chatter, while ETF, Binance, and Coinbase-related news will move the dial.

A response to the request to dismiss the SEC case against Coinbase would influence market sentiment.

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.

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