XRP Price Action Remains Bullish Though Avoiding Sub-$0.45 Will Be Key

Key Insights:

• On Saturday, XRP consolidated a Friday 3.28% rally with a 0.94% gain.
• SEC v Ripple case updates and easing bets of a December 75-basis point Fed rate hike delivered XRP price support.
• However, the technical indicators remain bearish, with XRP sitting below the 100-day EMA, signaling a fall to sub-$0.45.

On Saturday, XRP rose by 0.94%. Following a 3.28% rally on Friday, XRP ended the day at $0.46554. XRP ended the day below the $0.50 mark for the thirteenth consecutive session while avoiding sub-$0.45 for the second day in a row.

A bearish start to the day saw XRP fall to an early low of $0.45659. However, steering clear of the First Major Support Level (S1) at $0.4437, XRP rose to an early afternoon high of $0.47041. Coming up against the First Major Resistance Level (R1) at $0.4700, XRP fell back to $0.4610 before a late recovery to end the day at $0.46554.

Investor sentiment towards the SEC v Ripple case continued to deliver XRP price support. Less hawkish Fed chatter and calming comments from US Treasury Secretary Janet Yellen added further support on Saturday.

Court Filings Continue to Draw Attention as the Unsealing Process Continues

After a busy Friday session, investors had the opportunity to review and digest the Court filings from the week.

Amicus curiae legal counsel John Deaton delivered numerous views about the SEC and Ripple Court filings. Deaton noted that Ripple submitted 3,000 XRP holder affidavits. The filings likely aim to demonstrate the use of XRP for utility purposes. The affidavits and the Amicus brief filings should keep the momentum going for the Defendants.

On Monday, parties will file public, redacted versions of the opposition briefs that will give investors greater insight into the arguments from either side. We could see some investor apprehension creep in ahead of the Monday filings.

XRP Price Action

At the time of writing, XRP was down 0.39% to $0.46371. A bearish start to the day saw XRP fall from an early high of $0.46541 to a low of $0.45850.

Technical Indicators

XRP needs to move through the $0.4642 pivot to take a run at the First Major Resistance Level (R1) at $0.4718. With the markets waiting for Monday’s redacted public filings, optimism toward a favorable outcome would need to linger to support a return to $0.47.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4780 and $0.48. The Third Major Resistance Level (R3) sits at $0.4918.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4580 in play. However, barring an extended sell-off, XRP should avoid sub-$0.45. The Second Major Support Level (S2) at $0.4504 should limit the downside. The Third Major Support Level (S3) sits at $0.4365.

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 $0.46636. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

XRP needs to move through the 50-day EMA ($0.46636) to target the 100-day EMA ($0.47061) and R1 ($0.4718). However, failure to move through the 50-day EMA ($0.46636) would give the bears a run at S1 ($0.4580) and the 200-day EMA ($0.45765).