XRP Faces a Jittery Few Days as the Focus Returns to SEC v Ripple Case

Key Insights:

• On Monday, XRP fell by 1.91%, marking the second loss in eight sessions.
• Investor optimism toward a favorable outcome to the SEC v Ripple case took a backseat, with the NASDAQ Index weighing on investor sentiment.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a possible return to sub-$0.35.

On Monday, XRP fell by 1.91%. Reversing a 0.13% loss from Sunday, XRP ended the day at $0.38899. Notably, XRP failed to revisit $0.40 for the first time in five sessions and saw red for the second time in eight sessions.

A mixed start to the day saw XRP rise to an early high of $0.39853. Falling short of the First Major Resistance Level (R1) at $0.4148, XRP slid to an early low of $0.37312. XRP fell through the First Major Support Level (S1) at $0.3865 and the Second Major Support Level (S2) at $0.3764. Finding afternoon support, XRP broke back through the Major Support Levels to end the day at $0.38899.

China Protests Weigh on XRP and the NASDAQ Composite

On Monday, the market reaction to news of COVID-19 protests across China weighed on riskier assets. A final-hour Sunday pullback and an early Monday sell-off left XRP and the broader market in the red.

The NASDAQ Mini fell into negative territory, responding to a slide in crude oil prices and the Asian equity markets. Sentiment failed to improve through the US session, with the NASDAQ Composite Index ending the day down by 1.58%.

For XRP investors, optimism toward the outcome of the ongoing SEC v Ripple case failed to provide support.

On Wednesday, the SEC and defendants must file summary judgment reply briefs. The public can access redacted versions on December 5. The reply briefs are significant as Ripple could use the filing to corner the SEC into a settlement.

William Hinman’s speech-related documents and the Amicus Briefs will likely be areas of interest. While the defendants have the documents in their possession, the SEC will want to prevent the public from accessing the Hinman documents.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

By way of history, the SEC failed to shield the Hinman speech-related documents on more than six occasions.

XRP Price Action

At the time of writing, XRP was down 1.07% to $0.38482. A mixed start to the day saw XRP rise to an early high of $0.38935 before falling to a low of $0.38303.

Technical Indicators

XRP needs to move through the $0.3869 pivot to target the Monday high of $0.39853 and the First Major Resistance Level (R1) at $0.4006. A return to $0.40 would signal a breakout session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4123. The Third Major Resistance Level (R3) sits at $0.4377.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3752 in play. Barring another extended sell-off, XRP should avoid sub-$0.3700 and the Second Major Support Level (S2) at $0.3615. The Third Major Support Level (S3) sits at $0.3361.

XRP movement today will likely continue to hinge on the NASDAQ, FTX-related news, and any unexpected filings or rulings from the Court on the SEC v Ripple case.

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 $0.38862. 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 ($0.38862) and 100-day ($0.39085) EMAs would bring R1 ($0.4006) and the 200-day EMA ($0.40493) into view. However, failure to move through the 50-day EMA would leave S1 ($0.3752) in play.