XRP Price Volatility Likely to Build on Rising SEC v Ripple Uncertainty

Key Insights:

• On Monday, XRP slipped by 0.12%, marking the fourth loss in five sessions.
• Bearish sentiment from across the broader market, stemming from US economic indicators and a NASDAQ pullback, weighed.
• The technical indicators are bearish, with XRP below the 50-day EMA, signaling a possible return to $0.35.

On Monday, XRP fell by 0.12%. Partially reversing a 0.60% gain from Sunday, XRP ended the day at $0.38942. XRP ended the day at sub-$0.39 for the third consecutive session and fell short of $0.40 for the fourth day.

A mixed morning saw XRP rise to a mid-morning high of $0.39500. XRP broke through the First Major Resistance Level (R1) at $0.3933 before sliding to a late low of $0.38100. XRP briefly fell through the First Major Support Level (S1) at $0.3865 and the Second Major Resistance Level (S2) at $0.3830. However, steering clear of sub-$0.38, XRP found late support to wrap up the day at $0.38942.

SEC v Ripple Case Jitters and US Economic Indicators Tests Buyers

There were no updates from the ongoing SEC v Ripple case to influence, leaving XRP in the hands of the broader crypto market.

News of China easing COVID-19 restrictions delivered support. However, US economic indicators and the NASDAQ Composite Index weighed in the afternoon session.

While external market forces influenced, investor angst towards the SEC v Ripple case added further XRP price pressure. Following the filings of the Summary Judgment Reply briefs, investors are in wait-and-see mode, with a Court ruling likely at any time.

A lack of settlement chatter has added to investor anxiety as uncertainty about the outcome of the SEC v Ripple case rises. We expect increased XRP price volatility over the near term, with the next Court date on December 22.

On Friday, Amicus Curiae attorney John Deaton spoke about the SEC, its intentions, and the possible impact on XRP and the broader crypto market. With increased investor anxiety, the comments likely contributed to the increased volatility.

John Deaton said,

“6 months ago on Fox Business, I said that Gensler would sue a major exchange or two for selling unregistered securities. I believe it, even more, today because it could cause another 50% crash. Then incumbents take a larger share.”

Today, SEC v Ripple-related chatter will continue to influence. The US economic calendar is on the lighter side, leaving investors little distraction from the ongoing case.

XRP Price Action

At the time of writing, XRP was down 0.72% to $0.38663. A mixed start to the day saw XRP rise to an early high of $0.39075 before falling to a low of $0.38465.

Technical Indicators

XRP needs to move through the $0.3885 pivot to target the First Major Resistance Level (R1) at $0.3959. A move through the morning high of $0.39075 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4025. The Third Major Resistance Level (R3) sits at $0.4165.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3819 in play. However, barring an extended sell-off, XRP should avoid sub-$0.3750 and the Second Major Support Level (S2) at $0.3745. The Third Major Support Level (S3) sits at $0.3605.

Chatter relating to Friday’s redacted Summary Judgment Reply briefs will draw interest.

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 $0.39170. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A breakout from the 50-day EMA ($0.39170) and the 100-day EMA ($0.39218) would support a move through R1 ($0.3959) to target the 200-day EMA ($0.40104) and R2 ($0.4025). However, failure to move through the 50-day ($0.39170) would leave S1 ($0.3819) in play.