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XRP Faces Sub-$0.50 on SEC Ramp Up Ahead of Hinman Doc Release

By:
Bob Mason
Published: Jun 8, 2023, 01:39 GMT+00:00

XRP was back in the red this morning. Investor optimism toward the SEC v Ripple case is on ice ahead of the Hinman speech-related documents.

XRP Technical Analysis - FX Empire

In this article:

Key Insights:

  • On Wednesday, XRP joined the broader market in the red, falling by 2.18% to end the day at $0.51830.
  • A lack of updates from the ongoing SEC v Ripple case left investor angst over the SEC moves against Binance and Coinbase to influence.
  • However, the technical indicators remained bullish, signaling a return to $0.55.

On Wednesday, XRP fell by 2.18%. Partially reversing a 4.06% slide from Tuesday, XRP ended the day at $0.51830. Despite the bearish session, XRP avoided sub-$0.50 for the first time in three sessions.

A mixed start to the day saw XRP rise to a mid-morning high of $0.53770. Falling short of the First Major Resistance Level (R1) at $0.5428, XRP fell to a late afternoon low of $0.50738. However, steering clear of the First Major Support Level (S1) at $0.5063, XRP revisited the $0.5260 handle before easing back to end the day at $0.51830.

SEC, Binance News, and Global Trade Data Leave Cryptos in the Red

It was another quiet session on Wednesday, with no SEC v Ripple case-related news for investors to consider. The lack of updates left XRP in the hands of the crypto new wires and economic indicators from China and the US.

A slide in China exports and the widening of the US trade deficit to a six-month high were bearish.

However, news of Binance US delisting trade pairing and pausing its OTC trading in response to the SEC filings was also XRP price negative.

The latest SEC moves come ahead of the unredacted versions of the William Hinman speech-related documents. Significantly, the content of the speech-related documents could force the SEC into a settlement that could also end the reign of regulation by enforcement.

As investors await the Hinman speech-related documents, the progress of the Digital Asset Market Structure Draft Bill would also be significant.

The Day Ahead

US jobless claims will draw interest this afternoon. However, with no Fed commentary, initial jobless claims would have to spike to move the dial.

The light economic calendar will leave XRP in the hands of SEC v Ripple case updates and SEC v Binance and SEC-Coinbase (COIN)-related news.

US lawmakers could also influence as Republicans attempt to introduce regulatory clarity to the digital asset space.

XRP Price Action

At the time of writing, XRP was down 0.19% to $0.51729. A mixed start to the day saw XRP fall to an early low of $0.51627 before rising to a high of $0.52012.

XRP sees early red.
XRPUSD 080623 Daily Chart

XRP Technical Indicators

Resistance & Support Levels

R1 – $ 0.5349 S1 – $ 0.5046
R2 – $ 0.5514 S2 – $ 0.4908
R3 – $ 0.5818 S3 – $ 0.4605

XRP needs to move through the $0.5211 pivot to target the First Major Resistance Level (R1) at $0.5349 and the Wednesday high of $0.53770. A return to $0.5250 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5514. The Third Major Resistance Level (R3) sits at $0.5818.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5046 in play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.49. The Second Major Support Level (S2) at $0.4908 should limit the downside. The Third Major Support Level (S3) sits at $0.4605.

XRP support levels in play below the pivot.
XRPUSD 080623 Hourly Chart

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.51375. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.51375) would support a breakout from R1 ($0.5349) to target R2 ($0.5514). However, a fall through the 50-day EMA ($0.51375) would bring S1 ($0.5046) and the 100-day EMA ($0.49945) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 080623 4 Hourly Chart

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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