XRP Price Falls Short of $0.40 as Investors Hold Out for Hinman Ruling

Key Insights:

• On Sunday, XRP fell by 0.63%. A fourth consecutive day in the red left XRP up 0.89% for the week.
• A relatively range-bound week saw XRP lose ground to the crypto front runners as investors hold out for an SEC v Ripple Court ruling.
• However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting another run at $0.40.

On Sunday, XRP fell by 0.63%. Following a 0.47% loss on Saturday, XRP ended the week up 0.89% to $0.3756

A bullish start to the day saw XRP break through the First Major Resistance Level (R1) at $0.3848 to a late morning high of $0.3920. Coming up against the Second Major Resistance Level (R2) at $0.3915, XRP slid to a low of $0.3739.

Finding support at the First Major Support Level (S1) at $0.3739, XRP ended the day at $0.3756.

There were no updates from the ongoing SEC v Ripple case to influence, leaving XRP in the hands of the broader crypto market. The late morning reversal was in line with a broader market pullback that left the crypto market in negative territory for the session.

Uncertainty over the Fed’s September monetary policy decision and the SEC v Ripple case remain XRP headwinds.

A Court Ruling on the Hinman Docs Could Come this Week

On Sunday, XRP failed to extend a bullish morning run for a second session, with investors locking profits ahead of a Court ruling.

In late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege.

A Court decision on the SEC objection could come this week that will deliver price volatility. Significantly, the decision is likely to dictate the direction of the case. The SEC filed its objection on July 23.

We expect investor caution ahead of the Court decision.

XRP Price Action

At the time of writing, XRP was up 0.93% to $0.3791.

A choppy morning saw XRP fall to an early low of $0.3743 before rising to a high of $0.3794.

Technical Indicators

XRP needs to move through the $0.3805 pivot to support a run at the First Major Resistance Level (R1) at $0.3871 and the Sunday high of $0.3920.

A bullish broader market morning session would support a breakout from $0.3850.

In the case of an extended crypto rally, XRP could test the Second Major Resistance Level (R2) at $0.3986 and resistance at $0.40.

The Third Major Resistance Level sits at $0.4167.

Failure to move through the pivot would bring the First Major Support Level at $0.3690 into play. Barring a broad-based crypto reversal, XRP should avoid sub-$0.3650 and the Second Major Support Level (S2) at $0.3624.

The Third Major Support Level (S3) sits at $0.3443

Any court decision on the Hinman docs would mute the influence of the support and resistance levels.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.3772.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA flattened on the 200-day EMA, delivering bearish price signals.

Following this morning’s breakout, a hold above the 50-day EMA would support a move through R1 ($0.3871) to target R2 ($0.3986) and $0.40.

However, a fall through the 50-day EMA would bring the 100-day EMA (0.3728) and S1 (0.3690) into view.