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XRP Price Pressure Likely to Return as the Court Takes Time to Deliver

By:
Bob Mason
Updated: Sep 10, 2022, 10:21 UTC

Following Friday's return to $0.35, XRP visited $0.36 today. However, the delayed Court decision and a vocal SEC Chair could test XRP holder resilience.

XRP price action remains bullish - FX Empire

Key Insights:

  • On Friday, XRP made it three in a row, with a 5.09% rally to end the session at $0.35722.
  • Risk-on sentiment from the global financial markets delivered XRP support as investors moved on from the Fed fear that gripped earlier in the week.
  • The technical indicators are bullish, with XRP currently sitting above the 200-day EMA, supporting a return to sub-$0.40.

On Friday, XRP rallied 5.09%. Following a 0.98% gain on Thursday, XRP ended the day at $0.35722.

Bullish from the start of the day, XRP rallied from an early low of $0.33934 to a late morning high of $0.35927. XRP broke through the First Major Resistance Level (R1) at $0.3458 and the Second Major Resistance Level (R2) at $0.3517 to test resistance at $0.36 before easing back.

A sharp pickup in appetite for riskier assets delivered support, while the Courts remained silent on the SEC v Ripple case and pending Court decisions.

Appetite for Riskier Assets Delivered XRP Support Despite Gensler Chatter

A particularly bullish Friday session drove demand for riskier assets. The NASDAQ 100 rallied by 2.11% to end the week up 4.14%. An apparent shift in sentiment towards monetary policy supported the pickup in demand for riskier assets.

This week, investors recognized that the Fed is not alone in pushing 75-basis point rate hikes to bring inflation to target. Significantly, the ECB delivered a 75-basis point hike on Thursday, despite downward revisions to growth forecasts for this year and the next.

While the pickup in risk sentiment was good news for XRP holders, the pending Court decision on the Hinman docs remains a headwind.

In late July, the SEC filed an objection to a Court ruling denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege. A decision on the SEC objection could come at any time.

By way of background, 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.

The Courts continue to entertain the SEC’s motions and objections against rulings that go against them. With the XRP Community having waited since late July, the decision could go either way.

As the SEC drags out the ongoing SEC v Ripple case, SEC Chair Gary Gensler has become more vocal. On Thursday, the WSJ reported comments from the SEC Chair, who talked of giving regulatory oversight of non-security cryptos to the CFTC. However, Gensler continued to tag the majority of cryptos as securities that should fall under his jurisdiction.

The comments make the outcome of the SEC v Ripple case all the more critical for the digital asset space.

XRP Price Action

At the time of writing, XRP was down 0.66% to $0.35488. A choppy morning saw XRP rise to an early high of $0.36147 before falling to a low of $0.35179.

XRP sees red.
XRPUSD 100922 Daily Chart

Technical Indicators

XRP needs to avoid the $0.3519 pivot to retarget the First Major Resistance Level (R1) at $0.3645 and resistance at $0.3650.

A broad-based crypto rally would support a breakout from R1 to bring the Second Major Resistance Level (R2) at $0.3719 into view. The Third Major Resistance Level (R3) sits at $0.3918. Any updates from the ongoing SEC v Ripple case would support a breakout.

A fall through the pivot would give the bears a run at the First Major Support Level (S1) at $0.3446. Barring an extended sell-off, XRP should avoid sub-$0.34 and the Second Major Support Level (S2) at $0.3320.

The Third Major Support Level (S3) sits at $0.3121.

XRP resistance levels in play above the pivot.
XRPUSD 100922 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

At the time of writing, XRP sat above the 200-day EMA, currently at $0.34375. The 100-day EMA narrowed to the 200-day EMA, with the 50-day EMA converging on the 100-day EMA. The price signals were bullish.

A bullish cross of the 50-day EMA through the 100-day EMA would support another run at R1 ($0.3645). However, a fall through to sub-$0.35 would bring S1 ($0.3446) and the 100-day EMA ($0.33789) into play.

EMAs bullish.
XRPUSD 100922 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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