XRP Hit by FUD News of SEC v Ripple Judge Being a Deep State Member

Key Insights:

• On Sunday, XRP bucked a bullish crypto market trend, falling by 1.79% to end the day at $0.36686.
• A quiet Sunday session left XRP at the mercy of FUD, which likely contributed to the trend-bucking decline.
• The technical indicators remained bearish, signaling a return to sub-$0.35.

On Sunday, XRP fell by 1.79%. Following a 1.01% loss on Saturday, XRP ended the week down by 2.93% to $0.36686. Significantly, XRP ended the session at sub-$0.38 for the fourth consecutive day.

A bullish start to the day saw XRP rise to an early high of $0.37706 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3795, XRP fell to a final-hour low of $0.36577. XRP fell through the First Major Support Level (S1) at $0.3680 to end the day at sub-$0.37 for the first time since January 10.

Investor Interest in the SEC v Ripple Case to Hit New Levels

It was another quiet session, with no updates from the ongoing SEC v Ripple case to influence investor sentiment.

While there were no updates to consider, FUD likely contributed to the Sunday pullback. Amicus Curiae attorney John Deaton shared an article that suggested presiding Judge Torres is part of the deep state and would rule in favor of the SEC. John Deaton shared the article saying,

“People are reading this entirely wrong. People read that Judge Torres dismissed the case vs two guards who falsified records related to Epstein and then make the crazy leap that Judge Torres is part of the deep state and will thus rule in favor of the SEC. Absolutely not true.”

Deaton added,

“The judge didn’t summarily dismiss this case the way people are assuming. She dismissed it according to a plea deal after prosecutors said in a filing last week that the guards completed deferred prosecution.”

FUD remains a problem for the crypto market. On Sunday, market intelligence firm Santiment said,

“Some bizarrely high levels of negative crypto sentiment have appeared this weekend, particularly here on Twitter. It’s hard to gauge what may be contributing to one of the highest levels of FUD Santimentfeed has ever recorded.”

Santiment elaborated on its findings, noting that cryptocrash has been a trending hashtag on Twitter even though the BTC pullback occurred on Friday.

The Day Ahead

Further updates and commentary from the SEC v Ripple case should have more influence than other crypto events. However, a lack of updates would leave XRP in the hands of the crypto news wires.

Investors should continue monitoring Binance, FTX, and Silvergate Bank-related news. Regulatory activity and lawmaker chatter will likely remain the focal point.

XRP Price Action

At the time of writing, XRP was down 0.12% to $0.36642. A mixed start to the week saw XRP fall to an early low of $0.36601 before rising to a high of $0.36739.

Technical Indicators

XRP needs to move through the $0.3699 pivot to target the First Major Resistance Level (R1) at $0.3740 and the Saturday high of $0.37706. A return to $0.37 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3812 and resistance at $0.3850. The Third Major Resistance Level (R3) sits at $0.3925.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3627 in play. However, barring another extended broad-based crypto sell-off, XRP should avoid sub-$0.3550. The Second Major Support Level (S2) at $0.3586 should limit the downside. The Third Major Support Level (S3) sits at $0.3473.

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 $0.37576. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

An XRP move through R1 ($0.3740) and the 50-day EMA ($0.37576) would give the bulls a run at the 100-day EMA ($0.38019) and R2 ($0.3812). An XRP move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.37576) would leave the Major Support Levels in play.