XRP Falls Short of $0.40 as Investors Await SEC v Ripple Court Ruling

Key Insights:

• On Sunday, XRP fell by 2.19%. Partially reversing a 5.38% gain from Saturday, XRP ended July up 14.21%.
• A lack of updates from the SEC v Ripple case left XRP in the hands of market risk sentiment.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA.

On Sunday, XRP fell by 2.19%. Partially reversing a 5.38% rally from Saturday, XRP ended July up 14.21% to $0.3793.

A bullish start to the day saw XRP rise to an early high of $0.3988. Falling short of the First Major Resistance Level at $0.4106, XRP slid to a late low of $0.3784.

Steering clear of the First Major Support Level at $0.3641, XRP briefly revisited $0.38 levels before easing back. There were no news updates from the SEC v Ripple case to influence, leaving XRP in the hands of the broader crypto market.

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XRP came under pressure on Sunday, with investors locking in July profits. It could be a pivotal week, with investors awaiting a court decision on the SEC objection to the court ruling on the Hinman speech-related documents.

The SEC v Ripple case has dragged on since December 2020. While XRP has responded to several court rulings, the outcome of the SEC objection could prove decisive. To date, the SEC has filed more than seven motions, attempting to shield the Hinman speech-related documents under the attorney-client privilege.

With the SEC filing its objection in late July, a ruling could hit the news wires at any time. Another court decision against the SEC may force SEC Chair Gary Gensler to take a settlement rather than either disclose the content of the Hinman docs or, worse yet, lose to Ripple in court.

By way of background, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Hinman delivered the speech in 2018, more than two years before the SEC filed a lawsuit against Ripple.

The latest objection follows a court ruling in July denying the SEC motion to protect the Hinman speech-related documents under the attorney-client privilege.

XRP Price Action

At the time of writing, XRP was up 0.34% to $0.3806.

A mixed start to the day saw XRP rise to an early high of $0.3858 before falling to a low of $0.3771.

Technical Indicators

XRP needs to move through the $0.3855 pivot to target the First Major Resistance Level (R1) at $0.3926 and the Sunday high of $0.3988.

XRP would need support from the broader market to break out from the morning high of $0.3858

In the case of an extended crypto rally throughout the session, XRP could target the Second Major Resistance Level at $0.4059.

The Third Major Resistance Level sits at $0.4263.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.3722 in play.

Barring an extended sell-off, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3651.

The Third Major Support Level sits at $0.3447.

This morning, 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 $0.3687.

The 50-day EMA pulled away from the 100-day EMA. Following the 100-day EMA bullish cross through the 200-day EMA, the 100-day EMA widened the gap from the 200-day EMA, both XRP price positives.

A widening of the 50-day EMA from the 100-day EMA would support a run at R1 to bring $0.40 back into view.

However, a fall through the 50-day would signal an extended sell-off and a likely test of S2.