XRP Price Pressure Lingers as the Court Holds Back on Hinman Ruling
- On Saturday, XRP slipped by 0.61% to record the fourth decline in eight sessions.
- Investor sentiment towards Fed Chair Powell’s speech from Friday pegged XRP back.
- The technical indicators remain bearish. With XRP sitting below the 50-day EMA, an XRP return to sub-$0.30 remains in play.
On Saturday, XRP slipped by 0.61%. Following a 3.21% decline on Friday, XRP ended the day at $0.33567.
A choppy start to the day saw XRP rise to an early high of $0.34498 before hitting reverse. Steering clear of the First Major Resistance Level (R1) at $0.3608, XRP slid to a mid-morning low of $0.32766.
However, steering clear of the First Major Support Level (S1) at $0.3238, XRP revisited $0.337 levels before easing back.
There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of updates left XRP in the hands of investor sentiment in the wake of Fed Chair Powell’s speech.
XRP Sees Modest Saturday Loss as Investors Digest Powell’s Comments
With no Court rulings or news from the SEC v Ripple case, downward price pressure persisted going into the weekend.
There was also no other crypto news for investors to consider and find a distraction from Powell’s stark warnings. With the markets now pricing in a series of sizable rate hikes to bring inflation to target, we expect increased sensitivity to the labor market and inflation figures.
A deterioration in labor market conditions and softer inflation would support less aggressive interest rate hikes in the coming months.
However, Court rulings from the SEC v Ripple case will likely have more influence in the months ahead. XRP holders await a Court decision on the SEC objection vis-à-vis the Court denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege remains the key driver.
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.
XRP Price Action
At the time of writing, XRP was down 0.48% to $0.33405.
A choppy start to the day saw XRP rise to an early high of $0.33602 before falling to a low of $0.33281.
An XRP move through the $0.3361 pivot would support a run at the First Major Resistance Level (R1) at $0.3445 and the Saturday high of $0.34498.
XRP will need broader market support for a breakout from the pivot and a return to $0.34.
In the case of an extended crypto rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3534.
The Third Major Resistance Level (R3) sits at $0.3707. A lack of direction from the crypto news wires will likely leave XRP under pressure this morning.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3272 in play. Barring another broad-based crypto sell-off, XRP should avoid sub-$0.32 and the Second Major Support Level (S2) at $0.3188.
The Third Major Support Level (S3) sits at $0.3015.
The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.
At the time of writing, XRP sat below the 50-day EMA, currently at $0.34517.
Following Monday’s bearish cross, the 100-day EMA fell back from the 200-day EMA, with the 50-day EMA sliding back from the 200-day EMA. The signals were bearish.
A further pullback of the 50-day EMA from the 200-day EMA would bring the Major Support Levels into play. However, a move through R1 ($0.3445) and the 50-day EMA ($0.34517) would give the bulls a run at the 100-day EMA ($0.35229) and R2 ($0.3534).