XRP Price in the Hands of US CPIs as Investors Await an SEC v Ripple Ruling
- On Tuesday, XRP slid by 2.78%, reversing Monday’s 1.75% gain with interest.
- While investors await the court ruling on the Hinman speech-related documents objection, US economic indicators have driven XRP volatility.
- The technical indicators are bearish, with XRP sitting below the 200-day EMA, leaving a spike in the US CPI to test buyers at $0.35.
On Tuesday, XRP slid by 2.78%. Reversing a 1.75% gain from Monday, XRP ended the day at $0.3675.
A mixed start to the day saw XRP rise to an early high of $0.38 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3851, XRP slid to a low of $0.3609.
XRP fell through the First Major Support Level (S1) at $0.3720 and the Second Major Support Level (S2) at $0.3651 before a partial recovery to $0.3675.
There were no SEC v Ripple updates to drive XRP price action, leaving XRP in the hands of broader market sentiment. A shift in investor focus to US CPI numbers weighed on appetite for riskier assets.
The bets are for another 75-basis point rate hike in September. However, another spike could see the markets bet on a percentage point move, a bearish scenario for XRP and the broader market.
While sentiment towards Fed monetary policy remains a headwind, the SEC v Ripple case remains the key driver.
Ripple Makes a Play Against the SEC Objection to the Hinman Ruling
Earlier today, defense attorney James Filan shared the Ripple response to the SEC objection to the Court denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege.
The Ripple defense team highlighted that the SEC could not show clear error, with the SEC conceding that Judge Netburn got the law right and only disagreed with the findings of the Court and the final decision.
It now rests with the Courts to decide the fate of the Hinman speech-related documents that, if disclosed, could have a material bearing on the case.
The former SEC Director of the Division of Corporation Finance, William Hinman, sits at the center of the case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
XRP Price Action
At the time of writing, XRP was down 1.14% to $0.3675.
A bearish morning saw XRP fall from an early high of $0.3676 to a low of $0.3584. XRP tested the First Major Support Level (S1) at $0.3589 early on.
An XRP move through the $0.3695 pivot would support a run at the First Major Resistance Level (R1) at $0.3780 and the Tuesday high of $0.38.
XRP would need support from the broader market to return to $0.37. Today, the US CPI numbers and the SEC v Ripple case are the key drivers.
In the case of an extended crypto rebound, XRP could test the Second Major Resistance Level (R2) at $0.3886 and resistance at $0.39.
The Third Major Resistance Level sits at $0.4077.
Failure to move through the pivot would leave the First Major Support Level at $0.3589 in play. In the event of another US inflation spike, XRP could test the Second Major Support Level (S2) at $0.3504 and support at $0.35.
The Third Major Support Level (S3) sits at $0.3313.
The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
At the time of writing, XRP sat above the 200-day EMA, currently at $0.3617.
The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish XRP price signals.
A move through the 100-day EMA, currently at $0.3680, and the pivot ($0.3695) would support a run at the 50-day EMA ($0.3716) to then target R1 ($0.3780).
However, a fall through the 200-day EMA ($0.3617) would support a fall through S1 to target S2 ($0.3504).