XRP Price Pressures Send XRP Tumbling Towards sub-$0.30

Key Insights:

• On Friday, XRP tumbled by 9.61% to end the day at $0.33478.
• Updates from the SEC v Ripple case failed to provide support as investors responded to hawkish FOMC member chatter.
• The technical indicators are bearish, with XRP sitting below the 200-day EMA, supporting a return to $0.30.

On Friday, XRP slid by 9.61%. Following a 2.37% loss from Thursday, XRP ended the day at $0.33478.

A bearish start to the day saw XRP slide from an early high of $0.37038 to a mid-morning low of $0.33011. XRP fell through the day’s Major Support Levels before briefly revising $0.34 levels. Falling short of the Third Major Support Level (S3) at $0.3502, XRP fell back to end the day at $0.33478.

Investor angst over Fed monetary policy overshadowed updates from the ongoing SEC v Ripple case.

FOMC member James Bullard leaned in favor of a 75-basis point hike. FOMC member Mary Daly, speaking early in the Thursday session, reportedly favored a 50 or 75 basis point move. Significantly, both also talked of a rise-and-hold strategy rather than reversing course.

While the threat of a 75-basis point interest rate hike is nothing new, the consensus was that the Fed would swiftly cut interest rates after taming inflation. Chatter from Thursday suggested otherwise.

SEC and Ripple Motions Fail to Influence as Investors Await Hinman Ruling

On Friday, defense attorney James Filan shared the latest from the SEC v Ripple case. However, there were no fireworks to deliver XRP price action.

James Filan tweeted,

“The SEC has filed a letter requesting to seal portions of the parties’ oppositions to the Exclusion Motions that contain information identifying the SEC’s expert witnesses and the personal financial information of one of the SEC Experts.”

The Ripple defense team was also in action. Filan shared the latest, tweeting,

“The Ripple Defendants have filed a letter proposing narrowly-tailored redactions to a limited number of exhibits to the briefs filed by parties in opposition to the motions to exclude expert testimony.”

However, the filings had a muted impact on XRP, as 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.

Earlier this week, the SEC filed a reply brief to strengthen its objection. A Court ruling could come at any time.

XRP Price Action

At the time of writing, XRP was up 1.59% to $0.34010.

A bullish start to the day saw XRP rise from an early low of $0.33522 to a high of $0.34074.

Technical Indicators

An XRP move through the $0.3451 pivot would support a run at the First Major Resistance Level (R1) at $0.3601.

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

In the case of an extended crypto rebound, XRP would likely test resistance at the Friday high of $0.37038. However, XRP would likely fall short of the Second Major Resistance Level (R2) at $0.3854.

The Third Major Resistance Level (R3) sits at $0.4256.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3198 in play. Barring another broad-based crypto sell-off, XRP should avoid sub-$0.31 and the Second Major Support Level (S2) at $0.3048.

The Third Major Support Level (S3) sits at $0.2646.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.36647

The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bearish price signals. A bearish cross of the 50-day EMA through the 200-day EMA would bring the Major Support Levels into play.

XRP would need to move through R1 ($0.3601) to support a move through the 200-day EMA ($0.36647). A breakout from the 50-day EMA ($0.36778) would support a run at the 100-day EMA ($0.36966) and $0.37.

Working on XRP technical analysis – Price action from the day prior – Key drivers near-term (Including brief update from the SEC v Ripple case) and regulatory chatter – Price action for the day ahead (This includes support, resistance, pivots, and EMAs – 4-hourly).