XRP Price Action Bearish with Sub-$0.30 in Play Barring a Court Ruling

Key Insights:

• On Saturday, XRP slipped by 0.77% to end the day at sub-$0.33.
• Bearish sentiment from Friday continued to plague XRP and the broader crypto market going into the weekend.
• The technical indicators remain bearish. XRP currently sits below the 50-day EMA, pointing to a return to sub-$0.30.

On Saturday, XRP fell by 0.77%. Following a 0.70% decline from Friday, XRP ended the day at $0.32196. For the current week, XRP is up 2.17%, with three bullish sessions from six delivering the upside.

A choppy morning saw XRP strike an early high of $0.33412. Coming up short of the First Major Resistance Level (R1) at $0.3355, XRP slid to a mid-morning low of $0.32664 before briefly revisiting the $0.33 level. Despite the loss, XRP avoided the First Major Support Level (S1) at $0.3258.

The bearish sentiment from Friday, stemming from the August labor market stats, US Treasury Secretary Janet Yellen, and expectations of hawkish policy moves in the coming months, continued to pressure the broader crypto market.

For XRP, while recovering from an August low of $0.31868, the upside remains capped by the ongoing SEC v Ripple case. A pending Court ruling has left XRP at sub-$0.34 for seven sessions.

Court Decision on William Hinman Documents Remains Elusive

In late July, the SEC filed an objection to a Court ruling denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege. To date, the SEC has filed at least seven motions attempting to reverse court rulings in favor of Ripple Labs.

The former SEC Director of the Division of Corporation Finance, William Hinman, is a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The SEC has withheld documents related to the speech until now, despite the Court rulings.

The consensus is that the documents contain sensitive information that could place the SEC in a difficult position vis-à-vis the crypto market. It is a tricky time for the SEC, which is vying to become the regulatory authority for digital assets.

In recent months, lawmakers have favored handing regulatory powers to the Commodity Futures Trading Commission (CFTC). An SEC loss would likely increase support for the CFTC to regulate the digital asset space.

With a Court ruling likely to come at any time, XRP holders remain in limbo. A favorable outcome without an SEC option to contest would support an extended crypto breakout and provide relief to the broader crypto market.

XRP Price Action

At the time of writing, XRP was up 0.05% to $0.32931. A mixed start to the day saw XRP rise to an early high of $0.33259 before sliding to a low of $0.32776.

Technical Indicators

XRP needs to move through the $0.3300 pivot to target the First Major Resistance Level (R1) at $0.3333 and the Saturday high of $0.33412.

XRP will need broader market support for a breakout from the morning high of $0.33259. However, Fed fear remains a headwind that will likely hinder a return to $0.34.

In the case of an extended crypto rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3375. With the Court ruling pending and Fed fear lingering, R2 would likely cap the upside.

The Third Major Resistance Level (R3) sits at $0.3449.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3258 in play. In the case of a Fed-fueled sell-off, XRP could test the Second Major Support Level (S2) at $0.3225 and support at $0.32.

The Third Major Support Level (S3) sits at $0.3150.

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 $0.33170. The 100-day EMA fell back from the 200-day EMA, with the 50-day EMA easing back from the 200-day EMA. The XRP price signals were bearish.

A further pullback of the 50-day EMA from the 200-day EMA would bring the Major Support Levels into play. However, an XRP move through the 50-day EMA ($0.33170) and R1 ($0.3333) would give the bulls a run at R2 ($0.3375) and the 100-day EMA ($0.33858). The 200-day EMA sits at $0.34696.