XRP Price Pressure Returns as Investors Await the SEC’s Next Move

Key Insights:

• On Monday, XRP rallied by 3.21% to end the session at $0.46274.
• The SEC v Ripple case took a back seat, with US economic indicators delivering a broad-based crypto rally.
• The technical indicators remain bullish, with XRP sitting above the 100-day EMA, supporting a return to $0.50.

On Monday, XRP rallied by 3.21%. Partially reversing a 5.64% slide from Sunday, XRP ended the session at $0.46274.

A choppy start to the day saw XRP slide to an early morning low of $0.43800. Steering clear of the First Major Support Level (S1) at $0.4356, XRP rallied to a late high of $0.46943. However, coming up against the First Major Resistance Level (R1) at $0.4696, XRP slipped back to end the day at sub-$0.4630.

US Economic Indicators Deliver an XRP Boost

There were no updates from the ongoing SEC v Ripple case to provide XRP with direction. The lack of updates or comments following the latest Court ruling has left XRP in the hands of the broader crypto market.

US economic indicators delivered a bullish session on Monday, with manufacturing sector data easing bets of another hawkish Fed rate hike in November.

In September, the ISM Manufacturing PMI fell from 52.8 to 50.9. While the sector continued to expand, the employment and new order sub-components eased Fed fear through the US session. The Employment Index fell from 54.2 to 48.7, with the New Orders Index sliding from 51.3 to 47.1.

While US economic indicators continue to influence, the SEC v Ripple case will remain the key driver. Investors await an SEC response to the Court overruling the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

There has been a lack of commentary since Thursday’s ruling, which suggests an appeal is on the cards.

In a series of tweets, defense attorney James Filan shared his thoughts on the SEC’s options. These included,

• Ask Judge Torres to reconsider her overruling the SEC objection.
• Request the Court to certify an appeal of the Court decision.
• Go to the Court of Appeals on a Petition for Writ of Mandamus.
• All the above.

Uncertainty over the next steps resulted in a retrace from Thursday’s high of $0.50938. XRP will remain under pressure until there is clarity on what lies ahead.

XRP Price Action

At the time of writing, XRP was down 2.05% to $0.45327.

A mixed start to the day saw XRP rise to an early high of $0.46264 before sliding to a low of $0.45200.

Technical Indicators

XRP needs to move through the $0.4567 pivot to target the First Major Resistance Level (R1) at $0.4754. Investors will look out for any updates from the SEC and the Defendants.

Talk of an SEC appeal would likely limit the upside. However, weaker than forecast US economic indicators would support a bullish session should there be no updates from the case. US JOLTs job openings will draw plenty of interest today.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4882 and $0.50. The Third Major Resistance Level (R3) sits at $0.5196.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4440 in play. Barring an extended sell-off, XRP should avoid sub-$0.4350 and the Second Major Support Level (S2) at $0.4253.

The Third Major Support Level (S3) sits at $0.3939.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.44095. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

An XRP move through the 50-day EMA ($0.45838) would support a breakout from R1 ($0.4757) to target R2 ($0.4882). However, failure to move through the 50-day EMA would leave S1 ($0.4440) and the 100-day EMA ($0.44095) in play. The 200-day EMA sits at $0.41225.