XRP Finds Early Support as Investors Digest the Latest Court Filings

Bob Mason
Updated: Dec 4, 2022, 03:30 UTC

XRP extended its losing streak to three sessions on Saturday. Uncertainty toward the SEC v Ripple case will likely leave investors jittery near term.

XRP - Technical Analysis - FX Empire.

Key Insights:

  • On Saturday, XRP fell by 2.09%, extending its losing streak to three sessions.
  • Bearish sentiment from the broader crypto market and investor jitters over the SEC v Ripple case weighed.
  • The technical indicators are bearish, with XRP below the 100-day EMA, signaling a possible return to $0.35.

On Saturday, XRP fell by 2.09%. Following a 0.20% loss on Friday, XRP ended the day at $0.38756. XRP ended the day at sub-$0.39 for the first time in six sessions.

After a bearish morning, XRP rose to a mid-afternoon high of $0.39719 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.4009, XRP slid to a late low of $0.38566. XRP briefly fell through the First Major Support Level (S1) at $0.3872 before ending the day at $0.38756.

SEC v Ripple and US Economic and Fed Policy Uncertainty Weighed

XRP joined the broader crypto market in negative territory on Saturday. Updates from the ongoing SEC v Ripple case tested investor sentiment on Friday. Friday’s redacted versions of the Summary Judgment Reply briefs continued to deliver uncertainty on Saturday.

With both parties presenting their arguments, hopes of a settlement hang in the balance. However, the reference to William Hinman’s speech will give the SEC food for thought. Should Judge Torres use Hinman’s speech-related documents in her decision, the speech-related documents would become a matter of public record.

However, the SEC would need to feel the case slipping away to consider a settlement. The next Court date is December 22. Until then, we expect increased XRP price sensitivity to updates from the SEC v Ripple case.

On Saturday, Ripple Defense Attorney Stuart Alderoty commented on the redacted reply to the SEC’s opposition to Ripple’s Motion for Summary Judgment, saying,

“This is our final submission where we ask the Court to grant judgment in our favor. After two long years, Ripple is proud of the defense we’ve mounted on behalf of the entire crypto industry. We have always played it straight with the Court. Can’t say the same for our adversary.”

Ripple CEO Brad Garlinghouse had this to say,

“I said it on day 1, we will aggressively fight to clear rules for the entire industry in the US. Congratulations to all of Team Ripple for getting us to this point. Ripple stood strong and withstood the SEC’s onslaught. I look forward to being on the right side of justice.”

While investors wait for news updates and further commentary on the filings, XRP will remain in the hands of the broader crypto market. However, we do expect a decoupling, with the influence of the SEC v Ripple case likely to mute the effects of the Fed and sentiment toward the US economic outlook.

XRP Price Action

At the time of writing, XRP was up 0.98% to $0.39134. A bullish start to the day saw XRP rise from an early low of $0.38711 to a high of $0.39168.

XRP finds support.
XRPUSD 041222 Daily Chart

Technical Indicators

XRP needs to avoid the $0.3901 pivot to target the First Major Resistance Level (R1) at $0.3946. A return to $0.3950 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4017 and the current-week high of $0.41147. The Third Major Resistance Level (R3) sits at $0.4132.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3831 into play. However, barring an extended sell-off, XRP should avoid sub-$0.38 and the Second Major Support Level (S2) at $0.3786. The Third Major Support Level (S3) sits at $0.3671.

Chatter relating to Friday’s redacted Summary Judgment Reply briefs will draw interest.

XRP resistance levels in play.
XRPUSD 041222 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 100-day EMA, currently at $0.39282. The 50-day EMA converged on the 100-day EMA, while the 100-day EMA eased back from the 200-day EMA. The signals were bearish.

A breakout from the 100-day EMA ($0.39282) and the 50-day EMA ($0.39289) would support a move through R1 ($0.3946) to target R2 ($0.4017) and the 200-day EMA ($0.40247). However, failure to move through the 100-day ($0.39282) would leave XRP under pressure and bring S1 ($0.3831) into play.

EMAs bearish.
XRPUSD 041222 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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