XRP Price Pressure Builds as the SEC Drags Its Heels in the Ripple Case
- On Thursday, XRP fell by 0.31%, with a late reversal leaving XRP in the red.
- Market sentiment towards the Fed continued to overshadow updates from the SEC v Ripple case.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a run at $0.39.
On Thursday, XRP fell by 0.31%. Partially reversing a 3.81% rally from Wednesday, XRP ended the day at $0.3803
A bullish start to the day saw XRP strike an early high of $0.3858 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3892, XRP slid to a low of $0.3771. Steering clear of the First Major Support Level (S1) at $0.3661, XRP returned to $0.38 levels to limit the downside.
Updates from the SEC v Ripple case had a muted price impact as investors await Court rulings on the Hinman speech-related documents.
Following the US CPI numbers, US wholesale inflation figures provided XRP price support before sentiment towards the Fed turned bearish. With US inflation figures sitting well above the Fed’s target, the markets are betting on another sizeable rate hike in September, which was crypto-negative.
A Stall in the SEC v Ripple Case Leaves XRP at sub-$0.40
XRP last visited $0.40 on July 30, with a month high of $0.4098. Since then, XRP has been under price pressure, with market sentiment towards the Fed and the US economic outlook weighing.
However, the lack of progress in the SEC v Ripple case is of greater significance, with the SEC dragging its heels on delivering the defense with the Hinman speech-related documents.
In July, the Court denied the SEC claim that William Hinman’s speech-related documents fall under the attorney-client privilege. The Court instructed the SEC to provide the Ripple defense with the speech-related documents. The decision led to another SEC attempt to change the Court’s ruling.
Before the latest Court decision, the SEC had filed at least six motions attempting to shield the Hinman documents under the attorney-client privilege.
XRP remains in the hands of the Courts and, most likely, the final decision on the Hinman speech-related docs. A ruling in favor of Ripple would support an extended rally. However, with a decision likely at any time, XRP is unlikely to enjoy a breakout session.
XRP Price Action
At the time of writing, XRP was down 0.58% to $0.3781.
XRP needs to move through the $0.3811 pivot would support a run at the First Major Resistance Level (R1) at $0.3850 and the Thursday high of $0.3858.
XRP would need support from the broader market to breakout from the morning high of $0.3805. Today, the US consumer sentiment figures will need to be upbeat to bring R1 into view.
In the case of an extended crypto rebound, XRP could test the Second Major Resistance Level (R2) at $0.3898 and resistance at $0.39.
The Third Major Resistance Level sits at $0.3985.
Failure to move through the pivot would bring the First Major Support Level at $0.3763 into play. Barring a spike in US wholesale inflation, XRP should avoid sub-$0.37. The Second Major Support Level (S2) at $0.3724 should limit the downside.
The Third Major Support Level (S3) sits at $0.3637
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.3742.
The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish price signals.
A continued 50-day EMA widening from the 100-day EMA would support a move through R1 ($0.3850) to bring R2 ($0.3898) and $0.39 into play.
However, a fall through S1 ($0.3763) and the 50-day EMA ($0.3742) would bring S2 (0.3724) and the 100-day EMA, currently at $0.3700, into view.