XRP Targets Sub-$0.34 on Investor Jitters Over the SEC v Ripple Case

Key Insights:

• On Wednesday, XRP slid by 3.21% to end the day at $0.35593.
• A bearish crypto market session left XRP in the deep red, with uncertainty toward the SEC v Ripple case testing buyer appetite.
• The technical indicators turned bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.34.

On Wednesday, XRP slid by 3.21%. Reversing a 0.51% gain from Tuesday, XRP ended the day at $0.35593. Significantly, XRP ended the day at sub-$0.36 for the first time in three sessions.

A mixed start to the day saw XRP rise to an early high of $0.36836 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.3741, XRP slid to a mid-morning low of $0.35478. XRP fell through the First Major Support Level (S1) at $0.3600 to end the day at $0.35593.

There were no updates from the ongoing SEC v Ripple case to influence, leaving investors on a cautious footing.

Bearish Sentiment Weighs More Heavily on XRP

A lack of updates from the SEC v Ripple case left XRP in the hands of the broader crypto market. Fed and recession fears and COVID-19 news updates from China weighed on investor sentiment throughout the Wednesday session.

XRP holders were quick to lock in profits from the start of the week, leading to the return to sub-$0.35. Uncertainty toward the outcome of the SEC v Ripple case remains another XRP headwind.

XRP volatility reflects the constant shifts in mood, which leaves a return to sub-$0.30 in play.

Near-term, investors await two Court rulings that could decide the outcome of the SEC v Ripple case. A ruling on the SEC motion to protect the William Hinman speech-related documents and the Court ruling on the Summary Judgment Reply briefs are key.

A Ripple victory would have significant ramifications for the SEC and could thaw the extended crypto winter.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Today, investors should continue to monitor updates from the SEC v Ripple case. However, a lack of updates would leave the broader crypto market and the NASDAQ Index to influence.

XRP Price Action

At the time of writing, XRP was down 2.55% to $0.34685. A mixed start to the day saw XRP rise to an early high of $0.35756 before sliding to a low of $0.34586.

XRP fell through the First Major Support Level (S1) at $0.3510 and briefly through the Second Major Support Level (S2) at $0.3461.

Technical Indicators

XRP needs to move through S1 and the $0.3597 pivot to target the First Major Resistance Level (R1) at $0.3646 and the Wednesday high of $0.36836. A return to $0.36 would support a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3733 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3869.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $0.3461 in play. However, barring an extended sell-off, XRP should avoid sub-$0.34 and the Third Major Support Level (S3) at $0.3325.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

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 $0.35592. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.35592) would support a breakout from the 100-day EMA ($0.36010) to target R1 ($0.3646). However, failure to move through the 50-day EMA ($0.35592) would leave XRP under selling pressure.