XRP Price Prediction: US Inflation in Focus as Market Awaits Court Ruling

Key Insights:

• On Wednesday, XRP fell for a fourth consecutive day, weighed by another broad-based crypto pullback.
• There were no court rulings from the SEC v Ripple case to influence, leaving XRP in the hands of market risk sentiment.
• Technical indicators are bearish, with XRP sitting below the 50-day EMA.

On Wednesday, XRP slid by 2.37%. Following a 4.56% slide on Tuesday, XRP ended the day at $0.3289.

A mixed morning saw XRP rise to an early high of $0.3409 before hitting reverse. Falling well short of the First Major Resistance Level at $0.3498, XRP slid to a low of $0.3198.

The extended sell-off saw XRP fall through the First Major Support Level at $0.3295 and the Second Major Support Level at $0.3222 before ending the day at sub-$0.3289.

Investor fears of a recession continued to weigh, fueled by weaker than expected GDP numbers from the US.

In Q1, the US economy contracted by 1.6%, a downward revision to previous estimates of 1.5%. With consumer confidence on the slide and the Fed embarking on a rate path trajectory to bring inflation to target at any cost, market forces remain bearish.

On a directional basis, XRP closely tracked bitcoin (BTC) and the NASDAQ 100 throughout the day.

As was the case on Tuesday, the correlation reflected the lack of news updates from the SEC v Ripple case that remains the key driver.

XRP in the Hands of US Economic Indicators Ahead of any Court Ruling

The broader crypto market was under pressure through the morning session. Bearish sentiment across the global financial markets weighed on the NASDAQ 100 Mini to drag XRP into the red.

This afternoon, US economic indicators will provide further direction.

US Core PCE Price Index and personal spending figures are due out. Another pickup in inflationary pressure and a fall in personal spending would be a bad combination for riskier assets.

Fed Chair Powell has talked of bringing inflation to target at any cost, which means a more aggressive interest rate trajectory should inflationary pressures continue to build.

Weak personal spending figures would fuel investor fears of a US economic recession.

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.

XRP Price Action

At the time of writing, XRP was down 3.28% to $0.3181.

A bearish morning saw XRP fall from an early high of $0.3301 to a low of $0.3150.

Technical Indicators

A move through the $0.3299 pivot would bring the First Major Resistance Level at $0.3399 and the Wednesday high of $0.3409 into play.

XRP would need market-friendly US stats to support a return to $0.34.

In the case of an extended crypto rally, XRP could test resistance at $0.35 and the Second Major Resistance Level at $0.3510. The Third Major Resistance Level sits at $0.3721.

Failure to move through the pivot would leave the First Major Support Level at $0.3188 in play. Barring an extended sell-off, XRP should avoid sub-$0.3100 and the Second Major Support Level at $0.3088. The Third Major Support Level sits at $0.2877.

Any court ruling on the William Hinman documents would remove the influence of the Major Support and Resistance Levels.

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 $0.3421. 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 $0.35 to bring the 200-day EMA, currently at $0.3710, into play.

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