XRP Price Volatility Could Spike ahead of SEC v Ripple Ruling

Key Insights:

• On Saturday, XRP fell by 0.47% to market a third consecutive session in the red.
• Market sentiment towards the ongoing SEC v Ripple remained a headwind going into the weekend.
• However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a run at $0.40.

On Saturday, XRP fell by 0.47%. Following a 0.13% loss on Friday, XRP ended the day at $0.3780.

A bullish start to the day saw XRP break through the First Major Resistance Level (R1) at $0.3835 to a mid-morning high of $0.3874. Coming up against the Second Major Resistance Level (R2) at $0.3872, XRP slid to a low of $0.3765.

Steering clear of the First Major Support Level (S1) at $0.3731, XRP ended the day at $0.3780.

There were no updates from the ongoing SEC v Ripple case to influence. US consumer sentiment and inflation expectation figures from Friday delivered early support. However, uncertainty gripped XRP investors.

Headwinds include uncertainty over September’s Fed monetary policy decision and the outcome of the SEC v Ripple case.

XRP Continues to Struggle Despite Bullish Signals from the US

On Saturday, XRP failed to extend a bullish morning run, with investors showing caution ahead of a Court ruling.

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 ruling. A Court decision could be final and ultimately dictate the direction of the case. With the SEC having filed its objection on July 23, a decision could come at any time.

We continue to expect the decision to have a material XRP price impact. However, any price move would be on the assumption that the SEC has no further options in the event of a ruling in favor of Ripple.

XRP Price Action

At the time of writing, XRP was up 1.35% to $0.3831.

A bullish morning saw XRP break through the First Major Resistance Level (R1) at $0.3848 to strike a high of $0.3890 before easing back.

Technical Indicators

XRP needs to avoid the $0.3806 pivot to support another run at the First Major Resistance Level (R1) at $0.3848.

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 resistance at $0.39 and target the Second Major Resistance Level (R2) at $0.3915.

The Third Major Resistance Level sits at $0.4024.

A fall through the pivot would bring the First Major Support Level at $0.3739 into play. Barring a broad-based crypto reversal, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3697.

The Third Major Support Level (S3) sits at $0.3588

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 $0.3759.

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, following the August 12 breakout from the 50-day EMA, would support a move through R1 ($0.3848) to retarget R2 ($0.3915).

However, a fall through the 50-day EMA ($0.3759) would bring S1 (0.3739) and the 100-day EMA, currently at $0.3719, into view.