XRP Price Volatility Spikes with a Visit to $0.34 Ahead of US Stats

Key Insights:

• On Monday, XRP rose by a modest 0.37%, with late support reversing losses from the session.
• The US markets were closed on Monday, leaving XRP in limbo. No court decisions and a lack of influence from the NASDAQ tested investor resilience.
• The technical indicators remain bearish. XRP currently sits below the 100-day EMA, supporting a return to sub-$0.30.

On Monday, XRP rose by 0.37%. Following a 0.61% gain on Sunday, XRP ended the day at $0.33295.

A bearish morning saw XRP slide to a late morning low of $0.32263. XRP fell through the First Major Support Level (S1) at $0.3288 before rebounding to a final hour high of $0.33341.

Coming up against the First Major Resistance Level (R1) at $0.3336, XRP eased back to sub-$0.3330.

The US Labor Day long weekend meant there were no Court rulings from the ongoing SEC v Ripple case. With the US markets also closed for the holiday, bearish sentiment from the European equity markets pressured through the morning session before support kicked in.

Investors Show Resilience Despite the Courts Delaying the Hinman Ruling

While US economic indicators and appetite for riskier assets continue to influence, the SEC v Ripple case remains the key driver.

Investors have been awaiting a Court decision to a late July SEC objection to a Court ruling denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege.

We expect the ruling to have a material impact on the case and XRP price action near-term.

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 the previous Court rulings.

XRP Price Action

At the time of writing, XRP was down 0.08% to $0.33269.

A choppy start to the day saw XRP strike 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 sliding to a low of $0.33087.

Technical Indicators

XRP needs to avoid the $0.3297 pivot to retarget the First Major Resistance Level (R1) at $0.3367.

A return to $0.3350 would support another breakout session. However, investors will likely be mindful of US economic indicators due later today and the possibility of a court ruling on the SEC objection.

In the case of an extended crypto rally, XRP would likely retest the Second Major Resistance Level (R2) at $0.3404 and resistance at $0.3450. The Third Major Resistance Level (R3) sits at $0.3512.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3259 into play. Barring a crypto market event, XRP should avoid sub-$0.32 and the Second Major Support Level (S2) at $0.3189.

The Third Major Support Level (S3) sits at $0.3081.

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

At the time of writing, XRP sat below the 100-day EMA, currently at $0.33692. The 100-day EMA fell back from the 200-day EMA, while the 50-day EMA narrowed to the 100-day EMA. The XRP price signals were mixed.

An XRP fall through the 50-day EMA ($0.33119) would bring the Major Support Levels into play. However, an XRP move through R1 ($0.3367) and the 100-day EMA (0.33692) would give the bulls another run at R2 ($0.3404) and the 200-day EMA ($0.34521).