XRP to Steer Clear of Sub-$0.60 Despite SEC Court Filings

Bob Mason
Published: Aug 10, 2023, 02:50 GMT+00:00

XRP avoided a sharp sell-off on Wednesday, reflecting investor confidence in Courts upholding the Judge Torres ruling on Programmatic Sales.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Wednesday, XRP avoided the red for the third consecutive day, gaining 0.14% to end the day at $0.6429.
  • News of the SEC seeking a stay of all proceedings pending appeal led to a pullback from a session high of 0.6657.
  • However, the shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Wednesday, XRP gained 0.14%. Following a 2.95% rise on Tuesday, XRP ended the day at $0.6429. XRP returned to the $0.66 handle for the first time in five sessions.

Weekly Chart sends bullish price signals.
XRPUSD 100823 Weekly Chart

XRP Price Action

This morning, XRP was down 0.33% to $0.6408. A mixed start to the day saw XRP rise to an early high of $0.6441 before falling to a low of $0.6387.

Daily Chart

The Daily Chart showed XRP/USD sitting at the lower level of the $0.6417 – $0.6530 resistance band. However, XRP held above the 50-day ($0.6263) and 200-day ($0.5198) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA, a bullish price signal.

However, looking at the 14-Daily RSI, the 45.92 reading sends bearish XRP price signals, signaling a fall through the 50-day EMA ($0.6263) to bring the $0.5900 – $0.5750 support band into play. However, a hold above the 50-day EMA ($0.6263) would support a breakout from the $0.6417 – $0.6530 resistance band.

XRP Daily Chart sends mixed price signals.
XRPUSD 100823 Daily Chart

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD sits at the lower level of the $0.6417 – $0.6530 resistance band, with the bears eyeing the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6491) and 200-day ($0.6484) EMAs, sending bearish near and longer-term price signals. The 50-day EMA converged on the 200-day EMA. A bearish cross of the 50-day EMA through the 200-day EMA would signal a fall toward the $0.5900 – $0.5750 support band. However, an XRP move through the 0.6417 – $0.6530 resistance band and the EMAs would give the bulls a run at $0.70.

The 50.91 14-4H RSI reading reflects moderately bullish sentiment, with buying pressure outweighing selling pressure. Significantly, the RSI signals a move through the EMAs and the $0.6417 – $0.6530 resistance band to target $0.70.

XRP 4-Hourly Chart sends bearish price signals.
XRPUSD 100823 4 Hourly Chart

SEC Appeal Plans Scupper an Extended Rally

It was a busy Wednesday session, with SEC v Ripple case-related news leading to a late pullback.

Early in the session, Judge Torres issued a pretrial scheduling order, with a jury trial set for the second quarter of 2024.

“The SEC then filed a letter outlining its basis for filing a Motion for Leave to File an Interlocutory Appeal regarding ‘Programmatic’ offers and sales to XRP buyers over trading platforms and Ripple’s Other Distributions.”

Defense attorney James Filan shared the news, adding,

“The SEC seeking a stay of all proceedings pending appeal is not unexpected.”

Significantly, the SEC is asking for the Court not to enforce the Judgment on Programmatic Sales until after an appeal.

While investors responded negatively to the news, XRP avoided a retrace of the Court ruling-fueled gains. The expectations of an appeal led to a pullback from the July 13 high of $0.9327 to sub-$0.60 before steadying.

The Day Ahead

SEC v Ripple case-related chatter will remain the focal point, with the SEC appeal of the Judge Torres ruling now the focal point.

However, investors should continue to track SEC activity and US lawmaker chatter. ETF, Binance, and Coinbase-related news also need consideration.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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