XRP Price Pressure Spikes on US CPI and SEC v Ripple Updates

Key Insights:

• On Tuesday, XRP slid by 7.62% to end the session at $0.3325.
• Updates from the SEC v Ripple case took a back seat, with the US CPI report for August sending riskier assets into the deep red.
• However, the technical indicators are bearish, with XRP currently sitting below the 100-day EMA, supporting a return to sub-$0.30.

On Tuesday, XRP slid by 7.62%. Reversing a 1.45% gain from Monday, XRP ended the day at $0.3325.

A bullish morning session saw XRP strike an early morning high of $0.3602. Falling short of the First Major Resistance Level (R1) at $0.3639, XRP eased back to $0.351 levels before a mid-day sell-off.

In response to the US CPI report for August, XRP tumbled through the day’s Major Support Levels to a low of $0.33101. Late in the day, XRP moved back through the Third Major Support Level (S3) at $0.3323 to reduce the deficit.

Updates from the ongoing SEC v Ripple had a muted impact, with the US CPI report shifting bets on Fed monetary policy. While US economic indicators and sentiment towards the Fed influence, the SEC v Ripple case remains the key driver.

Despite SEC v Ripple Activity, a Ruling on the Hinman Docs Remains Elusive

The defendants were in action this week, with Ripple opposing the SEC request to seal the identities of its proposed experts.

Defense attorney James Filan also shared news of Judge Torres approving the SEC and Ripple’s joint ‘scheduling proposal to govern sealing issues relating to the upcoming summary judgment motions.’

And overnight, the Ripple Defendants filed, under seal, their motion for summary judgment. The defendants filed the motion for summary judgment without a Court ruling on the Hinman speech-related docs.

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.

XRP Price Action

At the time of writing, XRP was up 0.14% to $0.33298. A mixed start to the day saw XRP rise to an early high of $0.33405 before falling to a low of $0.33166.

Technical Indicators

XRP needs to move through the $0.3412 pivot to target the First Major Resistance Level (R1) at $0.3515 and the Tuesday high of $0.3602.

Following Tuesday’s US CPI report, US stats will need to be crypto-friendly to support a return to $0.35. In the case of a broad-based crypto rebound, the Second Major Resistance Level (R2) at $0.3704 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3996.

Any favorable court decisions from the ongoing SEC v Ripple case would support a breakout.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3223 in play. Barring another extended sell-off, XRP should avoid sub-$0.32 and the Second Major Support Level (S2) at $0.3120.

The Third Major Support Level (S3) sits at $0.2829.

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

At the time of writing, XRP sat below the 100-day EMA, currently at $0.34257. This morning, the 50-day EMA crossed through the 200-day EMA, with the 100-day EMA easing back from the 200-day EMA. Both signals were price negative.

A bullish cross of the 50-day EMA through the 200-day EMA would support a run at R1 ($0.3515). However, XRP would need to move through the EMAs to target a return to $0.35.

Failure to move through the 100-day EMA ($0.34257) would leave S1 ($0.3223) in play.