XRP Price Pressures Build Amidst SEC v Ripple Uncertainty
- On Tuesday, XRP fell heavily for a second consecutive session to end the day at sub-$0.45.
- Optimism towards the SEC v Ripple case continued to weaken, sending XRP further back from last week’s high of $0.5587.
- However, the technical indicators are bullish, with XRP sitting at the 50-day EMA, supporting a return to $0.50.
On Tuesday, XRP slid by 4.68%. Following a 4.61% fall on Monday, XRP ended the day at $0.44599.
A bullish start to the session saw XRP strike a mid-morning high of $0.48728. Coming up short of the First Major Resistance Level (R1) at $0.4935, XRP slid to a late afternoon low of $0.4350. XRP fell through the First Major Support Level (S1) at $0.4502 to end the day at sub-$0.45.
A lack of progress in the SEC v Ripple case hit investor optimism towards a favorable outcome. External market forces added further pressure, with the US equity markets continuing to hit reverse. On Tuesday, the S&P500 fell for a sixth consecutive session, while the NASDAQ 100 gained a modest 0.25%.
Investor Optimism Overshadowed by Risk Aversion
Following last week’s breakout session, XRP is approaching double-digit losses for the current week. Optimism has turned to uncertainty, as investors await the next moves following the Motions of Summary Judgment filings.
According to the Court’s schedule, the parties must file all materials relating to oppositions to summary judgment motions by October 18.
Between now and October 18, the Court may hold back from making any rulings, which could drag the case into December and possibly 2023.
Over the weekend, Ripple CEO Brad Garlinghouse talked optimistically about the case and discussed the possible impact of an SEC win on Ripple and the broader crypto market.
XRP Price Action
At the time of writing, XRP was up 0.49% to $0.44819. A bullish start to the day saw XRP rise from an early low of $0.44640 to a high of $0.45000.
A move through the $0.4561 pivot would target the First Major Resistance Level (R1) at $0.4772 and the Tuesday high of $0.48728. Sentiment towards the SEC v Ripple case and support from the broader crypto market would bring $0.50 back into play.
An extended rally would support a run at $0.50 and the Second Major Resistance Level (R2) at $0.5084. The Third Major Resistance Level (R3) sits at $0.5607.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4249 in play. Barring an extended sell-off, XRP should steer clear of the Second Major Support Level (S2) at $0.4038.
The Third Major Support Level (S3) sits at $0.3515.
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat below the 50-day EMA, currently at $0.45207. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The signals were mixed.
Following the Tuesday fall through the 50-day EMA, a breakout from the 50-day EMA would support a run at R1 ($0.4772) to retarget $0.50. However, failure to move through the 50-day EMA ($0.45207) would give the bears a run at S1 ($0.4249). The 200-day EMA sits at $0.39174.