XRP Price Action Remains Bearish as Investors Await SEC v Ripple News

Key Insights:

• On Tuesday, XRP reversed a 0.75% gain, falling by 3.12% to end the day at $0.46541.
• Growing uncertainty over the SEC v Ripple case and the impact of the Fed on the global economy weighed.
• The technical indicators remain bearish, with XRP sitting below the 100-day EMA, signaling a fall to sub-$0.45.

On Tuesday, XRP fell by 3.12%. Reversing a 0.75% gain from Monday, XRP ended the day at $0.46541. Notably, XRP ended the day at sub-$0.49 for the eighth consecutive session.

A bullish start to the day saw XRP rise to an early high of $0.48390. Falling short of the First Major Resistance Level (R1) at $0.4876, XRP slid to a late low of $0.45762.

XPP fell through the First Major Support Level (S1) at $0.4682. However, steering clear of the Second Major Support Level (S2) at $0.4560, XRP found late support to end the day at $0.46541.

There were no updates from the ongoing SEC v Ripple case to provide price support, leaving uncertainty towards the SEC v Ripple case and Fed Fear to influence.

XRP Remains Under Pressure as Investors Await Updates from the Courts

While there were no updates from the Courts, the SEC and the defendants were due to file all materials relating to opposition to summary judgment motions. The filings had to include briefs, Rule 56.1 counterstatements, and supporting exhibits. The parties will file the materials under a temporary seal.

The filings were under a temporary seal meant there was no market access to the filings. However, tomorrow’s Court session could give investors an idea of what lies ahead.

The Court has scheduled the parties to meet on October 20 to identify redaction requests for the opposition briefs. Both parties have a small window to prepare for tomorrow’s session, which could lead to motions to redact most of the content.

Leading up to this week’s schedule, the SEC has filed motions to redact and objected to Ripple redactions motions. It could be a long session. It also remains to be seen whether the SEC’s failure to turn over the Hinman speech-related documents becomes a topic of discussion.

The SEC continues to withhold the Hinman docs despite the latest Court overrule and numerous others. The consensus is that the content could be damaging, not only to the case but also to the SEC.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was down 0.32% to $0.46391. A mixed start to the day saw XRP rise to an early high of $0.46642 before sliding to a low of $0.46255.

Technical Indicators

XRP needs to move through the $0.4690 pivot to take a run at the First Major Resistance Level (R1) at $0.4803 and the Tuesday high of $0.4839. Updates from the SEC v Ripple case will have to be in favor of the defendants to support a breakout session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4953 and $0.50. The Third Major Resistance Level (R3) sits at $0.5215.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4541 in play. However, barring an extended sell-off, XRP should avoid sub-$0.4450 and the Second Major Support Level (S2) at $0.4427. The Third Major Support Level (S3) sits at $0.4164.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 100-day EMA, currently at $0.47921. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

A bearish cross of the 50-day EMA through the 100-day EMA would send XRP to sub-$0.45. However, a move through the 100-day EMA ($0.47921) and R1 ($0.4803) would support a breakout from the 50-day EMA ($0.48134) to target R2 ($0.4953) and $0.50.