XRP Price Action Hinged on FTX-Linked Updates with Sub-$0.30 in Play

Key Insights:

• On Wednesday, XRP stumbled by 18.14%. A fifth consecutive day in the red left XRP at sub-$0.35.
• SEC v Ripple updates took a backseat for a second session, with XRP reacting to news of Binance pulling out of the FTX acquisition.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.30.

On Wednesday, XRP tumbled by 18.14%. Following a 12.74% slide on Tuesday, XRP ended the day at $0.33264. Notably, XRP ended the day at sub-$0.35 for the first time since September 15.

A mixed start to the day saw XRP rise to an early high of $0.41045. Coming up short of the First Major Resistance Level (R1) at $0.4703, XRP slid to a late low of $0.32000. XRP fell through the First Major Support Level (S1) at $0.3387 to end the day at $0.33264.

The SEC v Ripple case continued to take a backseat on Wednesday, with the market focus remaining on FTX and Binance’s plans to acquire the beleaguered platform.

However, news of Binance pulling the plug on the FTX acquisition left XRP and the broader market reeling.

Amicus Brief Requests Roll in Amidst Crypto Market Chaos

On Wednesday, Reaper Financial requested to file an Amicus Brief ahead of the November 11 deadline. Reaper Financial purchases and subsequently destroys assets.

According to the filing, Reaper Financial targets digital asset tokens existing on various blockchains, including but not limited to, the XRPL. Reaper Financial selects digital assets through a decentralized voting mechanism that requires the XRPL to function.

Referencing the ongoing SEC case against Ripple, Reaper Financial stated,

“It is greatly concerned with the SEC’s year-long position that the computer code that comprises the XRPL is itself a security/investment contract along with XRP.”

The filing went on to say,

“Reaper Financial must use XRP in order to issue a fungible token on the XRPL. Any project wishing to issue tokens on XRPL requires funded XRPL accounts and a certain amount of XRP.”

The latest filing joins a growing list of Ripple supporters.

However, news of Binance withdrawing from the FTX acquisition overshadowed the filing. For the defendants and XRP holders, the collapse of FTX will give the SEC and SEC Chair Gary Gensler greater incentive to oversee of the digital asset space.

In response to the FTX demise, the SEC Chair said,

“What we’ve seen in the last two days, if I can sort of step back from it a bit, it’s really part of a pattern of what we have seen over the past six or eight months.”

Gensler went on to say,

“Investors get hurt when we don’t rely upon the time-tested public policy guardrails.”

While the SEC may feel the collapse of FTX as a reason to regulate by enforcement more rigidly, US lawmakers will need to expedite the Lummis Bill and other bipartisan efforts to introduce a regulatory framework that doesn’t dismember the digital asset space.

XRP Price Action

At the time of writing, XRP was up 2.93% to $0.34240. A mixed start to the day saw XRP fall to an early low of $0.33019 before rising to a high of $0.35166.

Technical Indicators

XRP needs to move through the $0.3544 pivot to target the First Major Resistance Level (R1) at $0.3887 and the Wednesday high of $0.41045. A return to $0.40 would signal a shift in sentiment.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4448. The Third Major Resistance Level (R3) sits at $0.5353.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.2983 in play. However, barring another extended sell-off, XRP should avoid sub-$0.29 and the Second Major Support Level (S2) at $0.2639. The Third Major Support Level (S3) sits at $0.1735.

Throughout the session, FTX news updates will remain the key driver, with any negative news linked to the FTX collapse likely to send XRP into another tailspin.

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 $0.43887. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA crossing through the 200-day EMA. The signals were bearish.

A move through R1 ($0.3887) would bring the 50-day EMA ($0.43887) and R2 ($0.4448) into play. However, failure to move through R1 and the 50-day EMA ($0.43887) would leave S1 ($0.2983) in view.