XRP Price Prediction: Bears Eye Sub-$0.32 Ahead of Hinman Ruling

Key Insights:

• On Tuesday, XRP fell for a third consecutive day, with crypto market forces doing the damage.
• Updates from the SEC v Ripple case continued to have a muted impact as investors awaited a ruling on William Hinman’s speech-related documents.
• Technical indicators are bearish, with XRP sitting below the 50-day EMA.

On Tuesday, XRP slid by 4.56%. Following a 1.62% decline on Monday, XRP ended the day at $0.3369.

A mixed morning saw XRP rise to an early high of $0.3554 before hitting reverse. Falling well short of the First Major Resistance Level at $0.3638, XRP slid to a low of $0.3351.

The extended sell-off saw XRP fall through the First Major Support Level at $0.3451 and the Second Major Support Level at $0.3371 to end the day at sub-$0.3370.

In the afternoon session, US consumer confidence figures and rising crude oil prices weighed on riskier assets. The NASDAQ 100 slid by 2.98%, with bitcoin ending the day down by 2.25%.

On a directional basis, we saw strong correlation with bitcoin and the NASDAQ 100 throughout the day.

The correlation reflected the lack of news updates from the SEC v Ripple case that remains the key driver.

Crypto Market Forces Influence Ahead of Key Court Ruling

Ahead of today’s afternoon session, crypto market forces weighed on the crypto market.

Risk aversion ahead of central bank chatter brought Major Support Levels into play, with XRP facing the risk of heavier losses.

Later today, Fed Chair Powell is due to speak and could deliver another sell-off. It remains to be seen how Powell will navigate the current inflationary environment and waning consumer confidence.

Last week, Powell gave testimony on Capitol Hill talking about bringing inflation to target at any cost. Riskier assets will need a softer tone to shift sentiment.

For XRP, the pending court ruling on the SEC motion to shield William Hinman’s 2018 speech-related documents under attorney-client privilege remains the key driver.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

As things stand, we expect the XRP to remain under the clutches of the Fed. Ultimately, however, the outcome of the SEC v Ripple case will decide the fate of XRP and numerous other cryptos. The Hinman ruling will turn the case on its head and possibly force the SEC to agree on a Ripple settlement.

XRP Price Action

At the time of writing, XRP was down 3.50% to $0.3251.

A mixed morning saw XRP strike an early high of $0.3409. Falling short of the Major Resistance Levels, XRP fell through the First Major Support Level at $0.3295 to a low of $0.3246.

Technical Indicators

A move through the First Major Support Level and the $0.3425 pivot would bring the First Major Resistance Level at $0.3498 and the Tuesday high of $0.3554 into play.

XRP would need the broader crypto market to support a breakout from the morning high of $0.3409.

In the case of an extended crypto rally, XRP could test resistance at $0.36 and the Second Major Resistance Level at $0.3628. The Third Major Resistance Level sits at $0.3831.

Failure to move through the First Major Support Level and the pivot would leave the Second Major Support Level at $0.3222 in play. Barring an extended sell-off, XRP should avoid sub-$0.32. The Third Major Support Level sits at $0.3019.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sat below the 50-day EMA, currently at $0.3454.

Today, the 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA; price negative.

A bullish cross of the 50-day EMA through the 100-day EMA would support a return to $0.3650 to bring the 200-day EMA, currently at $0.3730, into play.

However, the XRP pullback from the 50-day EMA and a failed bullish cross will leave XRP under pressure.