XRP Price Pressure Returns with Hinman Ruling and the Fed in Focus

Published: Aug 22, 2022, 02:26 UTC•3min read

Following a bullish end to a bearish week, XRP was back in the red this morning, with uncertainty sending XRP and the broader market into the red.

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Key Insights:

On Sunday, XRP rose by 2.26% to end the week down by 8.26%.
There were no SEC v Ripple updates to influence, leaving XRP in the hands of the broader crypto market.
The technical indicators remain bearish. With XRP sitting below the 50-day EMA, sub-$0.30 remains in play.

On Sunday, XRP rose by 2.26%. Following a 0.71% gain on Saturday, XRP ended the week down by 8.26% to $0.34481.

A mixed morning saw XRP fall to an early low of $0.33569. Steering clear of the First Major Support Level (S1) at $0.3320, XRP rallied to a mid-morning high of $0.36200. XRP broke through the day’s Major Resistance Levels before a pullback to sub-$0.35. The reversal saw XRP fall through the Third Major Resistance Level (R3) at $0.3584 and the Second Major Resistance Level (R2) at $0.3479.

There were no updates from the ongoing SEC v Ripple case to influence. After the Friday meltdown, dip buyers delivered support despite plenty of uncertainty.

Uncertainty to Test XRP with the Fed and the Hinman Ruling in Focus

After a bullish weekend that reduced the deficit for the week, XRP will likely face price pressure in the week ahead. Investors face uncertainty over the Hinman Court ruling that could materially alter the direction of the SEC v Ripple case.

Investors await a Court decision on the SEC objection to the July court ruling, denying the SEC motion to shield the Hinman docs under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance, William Hinman, sits at the center of both rulings. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

While investors await the court ruling, the crypto market has to navigate the US economic calendar.

Key stats include Service Sector PMI, Core Durable Goods Orders, Q2 GDP, Jobless Claims, Inflation, and Personal Spending figures. The Fed will also influence, with speeches from the Jackson Hole Symposium needing consideration (Thurs/Fri).

The uncertainty was evident going into the Monday session, with the crypto market top ten a sea of red, weighed by the NASDAQ 100 Mini. This morning, the NASDAQ 100 Mini was down 72.25 points.

XRP Price Action

At the time of writing, XRP was down 1.26% to $0.34045.

A bearish start to the session saw XRP fall from a high of $0.34505 to a low of $0.34000.

XRPUSD 220822 Daily Chart

Technical Indicators

An XRP move through the $0.3475 pivot would support a run at the First Major Resistance Level (R1) at $0.3593 and the Sunday high of $0.36200.

XRP will need broader market support to break out from $0.3550.

In the case of an extended crypto rebound, XRP would likely test the Second Major Resistance Level (R2) at $0.3738 and resistance at $0.38.

The Third Major Resistance Level (R3) sits at $0.4001.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3330 in play. Barring another broad-based crypto sell-off, XRP should avoid sub-$0.3200. The Second Major Support Level (S2) at $0.3212 should limit the downside.

The Third Major Support Level (S3) sits at $0.2949.

XRPUSD 220822 Hourly Chart

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 $0.35774.

Following Saturday’s bearish cross, the 50-day EMA fell back from the 200-day EMA, while the 100-day EMA crossed through the 200-day EMA, delivering bearish price signals. A pullback of the 100-day EMA from the 200-day EMA would affirm the bearish cross to bring the Major Support Levels into play.

XRP would need to move through the 50-day EMA ($0.35774) and R1 ($0.3593) to target the 100-day EMA ($0.36362) and the 200-day EMA ($0.36363). A return to $0.3650 would signal a near-term bearish trend reversal.