XRP Price Action Turns Bearish While Sub-$0.55 Remains the Target

Key Insights:

• On Monday, XRP tumbled by 7.22%. The second loss from eight sessions left XRP at sub-$0.50 for the day.
• XRP led the crypto top ten into the red, with investors locking in recent profits amidst bearish crypto sentiment.
• However, the technical indicators remain bullish, with XRP sitting above the 100-day EMA, supporting a return to $0.55.

On Monday, XRP tumbled by 7.22%. Reversing a 2.87% gain from Sunday, XRP ended the day at $0.49364. The Monday loss was just the second in eight sessions, with XRP at sub-$0.50 for the first time in three sessions.

A bullish start to the day saw XRP rise to an early high of $0.53799. Coming up short of the First Major Resistance Level (R1) at $0.5518, XRP slid to a final-hour low of $0.49340. XRP fell through the First Major Support Level (S1) to end the day at $0.49364.

Broader crypto market forces left XRP on the back foot. A lack of updates from the ongoing SEC v Ripple case left investors to lock in profits amidst the crypto doom and gloom.

Investors Turn Cautious as Crypto Bears Overshadow Optimism

It was a quiet Monday session, with no updates from the ongoing SEC v Ripple case to provide direction. With the SEC yet to respond to the latest Court ruling on William Hinman’s speech-related, crypto market forces likely led to profit-taking to leave XRP at sub-$0.50.

However, despite the Monday sell-off, optimism towards the SEC v Ripple case remains XRP positive. An SEC appeal of the Court ruling may delay the need to turn over the William Hinman docs, an eventuality that the SEC may wish to avoid at all costs.

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

Overnight, John Deaton, counsel to XRP holders, failed to deliver another XRP breakout session. Deaton referred to Hinman and conflicts of interest with Simpson Thacher, Hinman’s former and current employer.

In late 2021, Empower Oversight, a non-profit government watchdog, filed a lawsuit against the SEC, alleging that former officials were biased against Ripple Lab and XRP. Empower Oversight claims that Hinman received millions of dollars from his former employee. After leaving the SEC, Hinman returned to Simson Thacher.

By way of background, Simpson Thacher is part of a group that promotes Enterprise Ethereum. The Empower Oversight case against the SEC is also ongoing.

XRP Price Action

At the time of writing, XRP was up 0.84% to $0.49781. A choppy start to the day saw XRP fall to an early low of $0.48589 before rising to a high of $0.49781.

Technical Indicators

XRP needs to move through the $0.5083 pivot to target the First Major Resistance Level (R1) at $0.5233 and the Monday high of $0.53799. Barring updates from the SEC v Ripple case, a return to $0.52 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at $0.55 and the Second Major Resistance Level (R2) at $0.5533. The Third Major Resistance Level (R3) sits at $0.5975.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4787 in play. Barring another extended sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4638. The Third Major Support Level (S3) sits at $0.4192.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.47831. The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA. The signals were mixed.

A move through the 50-day EMA ($0.50010) would support a breakout from R1 ($0.5233) to target R2 ($0.5529). However, a fall through the 50-day EMA ($0.50010) would give the bears a run sub-$0.48 and S1 ($0.4787). The 200-day EMA sits at $0.44405.