XRP Price Nose Dives as Risk Aversion Spreads ahead of US CPI Numbers

Key Insights:

• On Monday, XRP rose by 1.75% to reverse most of a 1.85% loss from the previous week.
• There were no SEC v Ripple news updates to influence, leaving the broader crypto market and US economic indicators to deliver support.
• The technical indicators remain bullish, with XRP sitting above the 100-day EMA.

On Monday, XRP rose by 1.75%. Following a 0.24% gain on Sunday, XRP ended the day at $0.3788.

A choppy session saw XRP fall to an early low of $0.3714. Steering clear of the First Major Support Level (S1) at $0.3681, XRP struck an early afternoon high of $0.3845.

XRP broke through the First Major Resistance Level (R1) at $0.3768 and the Second Major Resistance Level (R2) at $0.3812.

However, a late sell-off saw XRP slide back to sub-$0.3750 before wrapping up the day at $0.3788. The late rebound saw XRP move back through R1.

There were no cues from the crypto news wires to influence, leaving investors to consider the latest string of US economic indicators, which were crypto market positive. However, while the stats eased concerns about a US economic recession, the numbers did fuel expectations of a sizeable Fed rate hike in September.

For XRP, updates from the SEC v Ripple case had little impact on price action despite more SEC jostling.

SEC Continues to Take Advantage of its Authoritative Status

Overnight, the defense attorney James Filan shared the latest from the SEC v Ripple case. While there was little XRP price impact, the updates highlighted the issues that the courts and the Ripple defense team continue to face.

On Sunday, the SEC filed a one-liner to the courts stating,

Plaintiff Securities and Exchange Commission (the “SEC”) respectfully takes no position on Defendants’ motion to reopen fact discovery in order to serve non-party subpoenas for the purpose of obtaining video recordings “for authentication.”

The filing was in error as the Ripple defense did not request permission to reopen discovery but to serve non-party subpoenas to authenticate videos of seven SEC officials’ public remarks in connection with previous RFAs.

For the Ripple Defense, one of the seven is allegedly William Hinman. Hinman is a central figure in the SEC v Ripple case.

Many argue that the SEC continues to ignore court decisions, including the provision of the William Hinman speech-related documents.

In July, the SEC objected to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance, William Hinman, sits at the center of both rulings. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

For investors, the pending decision on the SEC objection to the court denying the SEC’s claim that the Hinman speech-related documents fall under the attorney-client privilege remains the key.

XRP Price Action

At the time of writing, XRP was down 2.16% to $0.3706.

A bearish morning saw XRP rise to an early high of $0.3800 before sliding through the First Major Support Level (S1) at $0.3720 to a low of $0.3700.

Investor jitters ahead of tomorrow’s US inflation figures sent XRP into the red.

Technical Indicators

An XRP move through S1 and the $0.3782 pivot would support a run at the First Major Resistance Level (R1) at $0.3851.

XRP would need support from the broader market to break out from the morning high of $0.3800.

In the case of an extended crypto rebound, XRP could test the Second Major Resistance Level (R2) at $0.3913. XRP price moves will likely hinge on rulings from the SEC v Ripple case.

Failure to move through S1 and the pivot would give the bears a look at the Second Major Support Level (S2) at $0.3651.

Barring a broad-based crypto sell-off, XRP should avoid sub-$0.3650. The Third Major Support Level (S3) sits at $0.3520.

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 $0.3686.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed XRP price signals.

A move through the 50-day EMA, currently at $0.3734, and the pivot would support a return to $0.38 to bring R1 into view.

However, a fall through the 100-day EMA ($0.3686) would bring S2 ($0.3651) into view.