XRP Price Action Turns Bearish as the SEC v Ripple Case Gains Momentum

Key Insights:

• On Monday, XRP slid by 3.32% to end the day at sub-$0.46 for the first time in four sessions.
• A lack of updates from the ongoing SEC v Ripple case left XRP on the back foot as investors await a Court decision on the SEC’s latest Hinman request.
• The technical indicators are bearish, with XRP sitting below the 200-day EMA, signaling a fall to sub-$0.40.

On Monday, XRP slid by 3.32%. Reversing a 0.75% gain from Sunday, XRP ended the day at $0.45344. XRP ended a three-day winning streak and ended the day at sub-$0.46 for the first time in four sessions.

A choppy start to the day saw XRP jump to an early high of $0.47322. Falling short of the First Major Resistance Level (R1) at $0.4768, XRP slid to an early afternoon low of $0.44800. XRP fell through the First Major Support Level (S1) at $0.4565 before briefly revisiting $0.46. However, a bearish end to the day saw XRP fall back through S1 to end the day at $0.45344.

Investor sentiment towards the SEC v Ripple case turned cautious as the parties progress towards a possible finale.

Investors Turn Cautious Towards SEC v Ripple Outcome

After finding support from the broader market over the weekend, sentiment turned bearish on Monday. Updates have yet to surface after the parties filed public, redacted versions of the opposition briefs on Monday.

While the Defendants have enjoyed favorable Court decisions in recent months, the progress in the case is beginning to gather momentum. As the case progresses, we expect XRP price volatility to pick up in response to updates and chatter from both parties.

One other area of focus remains the Hinman speech-related documents. Investors await a Court response to the SEC request for ‘in camera review proposed redactions to two drafts of Director Bill Hinman’s June 2018 speech that discuss pending determinations before the Commission.”

After failing to shield the Hinman speech-related docs under the attorney-client privilege, the SEC aims to use redactions to prevent the content from becoming public. A ruling in favor of the SEC would test investor resolve.

William Hinman remains a central figure in the SEC v Ripple case despite the SEC’s best efforts. 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 0.94% to $0.44916. A mixed start to the day saw XRP rise to an early high of $0.45687 before falling to a low of $0.44905.

Technical Indicators

XRP needs to move through the $0.45823 pivot to take a run at the First Major Resistance Level (R1) at $0.4684 and the Monday high of $0.47322. Updates from the SEC v Ripple case and broader crypto market sentiment will provide direction ahead of US economic indicators later in the day.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4834 and $0.49. The Third Major Resistance Level (R3) sits at $0.5087.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4432 in play. However, barring an extended sell-off, XRP should avoid sub-$0.4350 and the Second Major Support Level (S2) at $0.4330. The Third Major Support Level (S3) sits at $0.4078.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.4576. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

A move through the 200-day EMA ($0.45760) and the 50-day EMA ($0.46279) would give the bulls a run at the 100-day EMA (0.46773) and R1 ($0.4684). However, a failure to move through the 200-day EMA ($0.45760) would leave XRP under pressure.