XRP Price Movement Hinged on Fed Sentiment and SEC v Ripple Updates

Key Insights:

• On Tuesday, XRP fell by 2.34% to partially reverse a 3.79% gain from Monday.
• US economic indicators sent XRP into reverse as investors continue to wait for a Court ruling from the SEC v Ripple case.
• The technical indicators remain bearish. With XRP sitting below the 50-day EMA, a return to sub-$0.30 remains in play.

On Tuesday, XRP fell by 2.34%. Partially reversing a 3.79% gain from Monday, XRP ended the day at $0.32617.

A bullish start to the day saw XRP rise to a mid-morning high of $0.33562. Falling short of the First Major Resistance Level (R1) at $0.3391, XRP slid to a late afternoon low of $0.3202. XRP fell through the First Major Support Level (S1) at $0.3238 before a partial recovery to $0.32617.

A pending Court ruling on the SEC v Ripple case and US economic indicators left XRP well short of $0.40.

US Economic Indicators Send XRP into Negative Territory.

On Tuesday, US economic indicators took center stage, with Fed Fear having sent XRP and the broader market into a tailspin on Friday.

Following Fed Chair Powell’s speech from Jackson Hole, better-than-expected US economic indicators fueled expectations of a hawkish Fed policy move in September. While the markets have baked in a 75-basis point rate hike, a hawkish move would test support for riskier assets. Ahead of Powell’s speech, there had been some hope of the Fed taking the foot off the gas following softer inflation numbers.

For XRP holders, the delay in the Court decision on the SEC objection Is another headwind.

For more than four weeks, investors have been waiting for a Court decision on the SEC objection vis-à-vis the Court denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance, William Hinman, is a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

With a decision likely at any time, XRP continues to face price pressure, with sub-$0.30 still a possibility.

XRP Price Action

At the time of writing, XRP was up 0.48% to $0.32773.

Technical Indicators

XRP needs to avoid the $0.3273 pivot to target the First Major Resistance Level (R1) at $0.3345 and the Tuesday high of $0.33562.

XRP will need broader market support for a return to $0.33, with private sector PMIs from China to set the tone later this morning.

In the case of an extended crypto rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3428 and resistance at $0.3450.

The Third Major Resistance Level (R3) sits at $0.3582.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3190 into play. Barring another broad-based crypto sell-off, XRP should avoid sub-$0.3150 and the Second Major Support Level (S2) at $0.3119.

The Third Major Support Level (S3) sits at $0.2965.

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 $0.33658. The 100-day EMA fell back from the 200-day EMA, with the 50-day EMA sliding back from the 200-day EMA. The price signals were bearish.

A further pullback of the 50-day EMA from the 200-day EMA would bring the Major Support Levels into play. However, a move through R1 ($0.3345) and the 50-day EMA ($0.33658) would give the bulls a run at R2 ($0.3428) and the 100-day EMA ($0.34512).