XRP in Sideways Motion as Gary Gensler Leaves Appeal Door Ajar

Key Insights:

• On Monday, XRP kickstarted the week on the defensive, falling 1.40% to end the day at $0.7373.
• Silence on Capitol Hill and an SEC Gary Gensler response to the SEC v Ripple Court ruling weighed on buyer appetite.
• However, the nearer-term technical indicators are bullish, supporting another run at $0.80.

On Monday, XRP fell by 1.40%. Partially reversing a 4.68% rally from Sunday, XRP ended the day at $0.7373. Despite the bearish session, XRP avoided sub-$0.70 for the second consecutive session.

XRP Price Action

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.7737 – $0.7870 resistance band. However, XRP sat well above the 50-day ($0.5376) and 200-day ($0.4745) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA and reflected bullish momentum over the near term.

Despite retreating from a Thursday high of $0.9337, XRP/USD avoided the upper level of the $0.6530 – $0.6417 support band, supporting another run at $0.80.

However, a return to sub-$0.70 would bring the upper level of the $0.6530 – $0.6417 support band and sub-$0.65 into play.

Looking at the 14-Daily RSI, the 70.71 reading signals XRP in oversold territory. However, the EMAs signal a run at $0.80. Steering clear of sub-$0.70 will be important in the coming sessions.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.75. XRP/USD also sits below the $0.7737 – $0.7870 resistance band.

However, XRP sits above the 50-day ($0.6530) and 200-day ($0.5443) EMAs, sending bullish signals over the near and longer-term time horizons. Significantly, the 50-day EMA pulled further away from the 200-day EMA, supporting a move through $0.75 to target the $0.7737 – $0.7870 resistance band and $0.80.

The 14-4H RSI reading of 58.79 sends bullish XRP price signals and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum, supporting a breakout from $0.75 to target the $0.7737 – $0.7870 resistance band and $0.80.

SEC Chair Gary Gensler Leaves Door Ajar

Speaking at a National Press Club event, SEC Chair Gary Gensler expressed his disappointment over the SEC v Ripple ruling relating to Programmatic Sales, reportedly saying,

“We’re still looking at it and assessing that opinion.”

For investors hoping for the ruling to end the regulation-by-enforcement mantra, Gensler added the SEC would continue to bring firms that don’t comply with SEC rules into compliance, suggesting no end to the regulation-by-enforcement mantra that plagues the US digital asset space.

Chair of the House Financial Services Committee Patrick McHenry had this to say about SEC Chair Gary Gensler after the SEC v Ripple Court ruling,

“Democrats don’t have the votes to get their far-left environmental and social policy through Congress, so they are using the SEC to force their agenda on the American people. I will keep fighting to end Gary Gensler’s abuse of power.”

The Day Ahead

SEC v Ripple Court ruling-related chatter will remain the focal point, with investors waiting to see if the SEC plans to appeal the ruling.

However, we expect sentiment toward the broader market to influence, with Binance and Coinbase also facing SEC charges.

With Amicus Curiae attorney John Deaton moving on from the SEC v Ripple case, Deaton had this to say about the Coinbase case,

“We are at almost 2,900 Coinbase customers who have joined to serve as potential amici. Eleanor Terret announced today that Gary Gensler said he was disappointed about what the judge ruled related to retail investors in the XRP case. Remember, Gensler’s SEC objected to XRP holders serving as amicus curiae. If you don’t want Gensler and the SEC lawyers speaking on your behalf, consider joining.”