XRP Price Slide to Sub-$0.30 Hinged on Hawkish FOMC Member Chatter

Key Insights:

• On Tuesday, XRP joined the broader crypto market in the red, with a 3.41% loss
• The return of US investors from the Labor Day long weekend provided little crypto support, with US economic indicators driving Fed fear.
• XRP technical indicators remain bearish. XRP currently sits below the 50-day EMA, supporting a return to sub-$0.30.

On Tuesday, XRP slid by 3.41%. Reversing a 0.37% gain from Monday, XRP ended the day at $0.32160.

Tracking the broader market, XRP rose to an early high of $0.34279. XRP broke through the First Major Resistance Level (R1) at $0.3367 and the Second Major Resistance Level (R2) at $0.3404 before hitting reverse.

The reversal saw XRP slide through the First Major Support Level (S1) at $0.3259. Finding support at the Second Major Support Level (S2) at $0.3189, XRP wrapped up the day at $0.3216.

There were no Court rulings from the ongoing SEC v Ripple case for investors to consider, leaving XRP in the hands of US stats and risk sentiment.

US Economic Indicators Sink XRP and the Crypto Market

On Tuesday, ISM Non-Manufacturing PMI numbers weighed on the crypto market. In August, the PMI increased from 56.7 to 56.9. Economists forecast a fall to 55.1. With the services sector accounting for around 70% of the US economy, the pickup in service sector activity supports a more hawkish Fed.

While XRP remains under the influence of Fed fear, the ongoing SEC v Ripple case continues to draw interest. 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.

The SEC has withheld documents related to the speech until now, despite more than six failed attempts at shielding the docs. The SEC’s perseverance suggests that the documents could contain information detrimental to the SEC’s case.

XRP Price Action

At the time of writing, XRP was down 0.65% to $0.31952. A choppy start to the day saw XRP strike an early high of $0.32278 before sliding to a low of $0.31255.

Technical Indicators

XRP needs to move through the $0.3275 pivot to target the First Major Resistance Level (R1) at $0.3369 and the Tuesday high of $0.34279.

A pickup in appetite for riskier assets would support a breakout from the morning high of $0.32278. With FOMC members speaking later in the day, XRP would need dovish chatter for a return to $0.34.

In the case of an extended crypto rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3522. The Third Major Resistance Level (R3) sits at $0.3770.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3121 in play. Barring another extended sell-off, XRP should avoid sub-$0.3050 and the Second Major Support Level (S2) at $0.3027.

The Third Major Support Level (S3) sits at $0.2779.

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 $0.32990. The 100-day EMA fell back from the 200-day EMA, with the 50-day EMA sliding back from the 100-day EMA. The price signals were bearish.

An XRP move through the 50-day EMA ($0.32990) would bring the 100-day EMA ($0.33562) and S1 ($0.3369) into play. Failure to move through the 50-day EMA would leave the Major Support Levels in view.