XRP in the Hands of SEC v Ripple Court Filings and FTX News Updates

Key Insights:

• On Wednesday, XRP tracked the broader crypto market into the red, falling by 1.12%.
• Regulatory risk and uncertainty toward the outcome of the SEC v Ripple case pegged XRP back.
• The technical indicators remain bearish, with XRP sitting below the 50-day EMA, supporting a near-term decline to $0.30.

On Wednesday, XRP fell by 1.12%. Partially reversing a 2.84% rally from Tuesday, XRP ended the day at $0.34469. XRP ended the day at sub-$0.35 for the fourth consecutive day.

A mixed start to the day saw XRP rise to an early morning high of $0.35020. However, coming up short of the First Major Resistance Level (R1) at $0.3557, XRP fell to a mid-morning low of $0.33733. XRP fell through the First Major Support Level (S1) at $0.3389 before finding afternoon support to end the day at $0.34469.

Investors Ready for the Next Court Filings and SBF Testimony

There were no updates from the ongoing SEC v Ripple to draw investor interest ahead of today’s Court filings. By today, the Parties must file Omnibus Motions to Seal all materials relating to the Summary Judgment motions and redactions to the materials.

However, investors are awaiting Court decisions on the Motions for Summary Judgment and Motions to Exclude Expert Testimony. A Court ruling on the Motions for Summary Judgment would be the material ruling, which could come at any time.

Uncertainty towards the outcome of the SEC v Ripple case has left XRP on the back foot, with sub-$0.30 in view. While investors await the Court rulings, XRP continues to find direction from the broader crypto market, though the uncertainty has capped the upside.

On Wednesday, news updates on the extradition of Sam Bankman-Fried weighed on investor appetite. SBF testimony could fuel lawmakers’ calls for more stringent regulations and a closer look at Binance.

Today, investors need to continue monitoring updates from the SEC v Ripple case and any SBF commentary. US economic indicators will also draw interest, with Q3 GDP and jobless claims in focus. US stats and corporate earnings on Wednesday may have eased fears of a hard landing.

However, recessionary fears and a hawkish Fed remain crypto headwinds alongside regulatory risk.

XRP Price Action

At the time of writing, XRP was down 0.79% to $0.34195. A mixed start to the day saw XRP rise to an early high of $0.34707 before falling to a low of $0.34167.

Technical Indicators

XRP needs to move through the $0.3441 pivot to target the First Major Resistance Level (R1) at $0.3508. A move through the Wednesday high of $0.3502 and R1 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3569 and $0.36 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3698.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3379 in play. However, barring an extended sell-off, XRP should avoid sub-$0.33. The Second Major Support Level (S2) at $0.3312 should limit the downside.

The Third Major Support Level (S3) sits at $0.3183.

Without updates from the SEC v Ripple case, XRP will likely sit in the hands of the broader crypto market and the crypto news wires.

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 $0.35557. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.3508) would support a run at the 50-day EMA ($0.35557) and R2 ($0.3569). However, failure to move through the 50-day EMA ($0.35557) would leave XRP at risk of a fall to sub-$0.30.