XRP Price Pressures Linger Amidst Broader Crypto Market Rally
- On Friday, XRP fell by 0.13%, with XRP failing to join the broader crypto market in a Friday rally.
- Market sentiment towards the ongoing SEC v Ripple case pegged XRP back ahead of the weekend.
- However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.40.
On Friday, XRP fell by 0.13%. Following a 0.31% loss on Thursday, XRP ended the day at $0.3798.
A mixed start to the day saw XRP rise to an early high of $0.3807 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3850, XRP slid to a late morning low of $0.3701. XRP fell through the First Major Support Level (S1) at $0.3763 and the Second Major Support Level (S2) at $0.3724.
However, a late Friday rally saw XRP break back through the Major Support Levels to wrap up the day at $0.3798.
Following the US consumer and wholesale inflation figures, US consumer sentiment and inflation expectations delivered support. According to prelim figures, the Michigan Consumer Sentiment Index jumped from 51.5 to 55.1 in August. Looking at the sub-components, the Michigan Inflation Expectations Indicator slipped from 5.2% to 5.0%, another crypto positive.
While US economic indicators and market expectations of a less aggressive Fed were XRP positive, the ongoing SEC v Ripple case was a drag. Uncertainty ahead of a Court decision on the Hinman speech-related documents capped the upside.
XRP Shows Limited Reaction to US Stats to Trail the Broader Crypto Market
On Friday, XRP showed a relatively muted response to the US economic indicators. The lack of response saw XRP buck the broader crypto market trend, which was bullish.
Investor uncertainty over the outcome of the SEC v Ripple case began to test buyer appetite going into the weekend. In July, the Court denied the SEC claim that William Hinman’s speech-related documents fall under the attorney-client privilege. The Court decision led to another SEC attempt to change the Court’s position.
Before the latest Court decision, the SEC had filed at least six motions attempting to shield the Hinman documents under the attorney-client privilege. Investors now await yet another Court decision over the speech-related documents, which is testing support.
XRP Price Action
At the time of writing, XRP was up 0.50% to $0.3817.
A bullish morning saw XRP break through the First Major Resistance Level (R1) at $0.3835 to test the Second Major Resistance Level (R2) at $0.3872 before sliding back to $0.3820.
Avoiding the $0.3768 pivot would give the bulls another run at the First Major Resistance Level (R1) at $0.3835.
XRP would need support from the broader market to avoid a fall back to sub-$0.38.
In the case of an extended crypto rebound, XRP could retest the Second Major Resistance Level (R2) at $0.3872 and resistance at $0.39.
The Third Major Resistance Level sits at $0.3976.
A fall through the pivot would bring the First Major Support Level at $0.3731 into play. Barring a broad-based crypto reversal, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3664.
The Third Major Support Level (S3) sits at $0.3560
Any court decision on the Hinman docs would mute the influence of the support and resistance levels.
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.3757.
The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish price signals.
A continued 50-day EMA widening from the 100-day EMA would support a move through R1 ($0.3835) to retarget R2 ($0.3872) and $0.39.
However, a fall through the 50-day EMA ($0.3757) would bring S1 (0.3731) and the 100-day EMA, currently at $0.3711, into view.