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XRP Under Pressure as Investors Digest the Latest SEC v Ripple Filings

By:
Bob Mason
Updated: Apr 16, 2023, 06:32 UTC

After a bearish Saturday, XRP was back in negative territory this morning. Regulatory risk and law maker scrutiny remain broader market headwinds.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Saturday, XRP tracked the broader crypto market into the red, falling by 0.66% to end the session at $0.5201.
  • A lack of SEC v Ripple updates left investors to digest the latest Court filings and SEC activity.
  • However, the technical indicators remain bullish, signaling a run at $0.60.

On Saturday, XRP fell by 0.66%. Partially reversing a 2.00% gain from Friday, XRP ended the day at $0.5201. XRP avoided sub-$0.51 for the second consecutive day while wrapping up the day at the $0.52 handle for the second successive session.

After a mixed start to the day, XRP rose to a late morning high of $0.52623. Falling short of the First Major Resistance Level (R1) at $0.5435, XRP fell to an early evening low of $0.51712. However, steering clear of the First Major Support Level (S1) at $0.5077, XRP found late support to end the day at $0.5201.

Regulator and Lawmaker Scrutiny Remain Headwinds

The ongoing  SEC v Ripple case remained in the spotlight, with investors awaiting a reaction from the SEC on the Ripple response to the latest SEC filing. The Same-day response to the SEC filing demonstrated the Defendants’ position in the case, with hopes of a Ripple victory supporting the XRP return to $0.50.

While the SEC battles it out with Ripple in the Courts, Gary Gensler faces his battles within the SEC and on Capitol Hill.

Amicus Curiae lawyer John Deaton shared SEC Commissioner Hester Peirce’s dissent in response to Gensler’s call for public opinion on DeFi, saying,

“Every member of Congress should receive a copy of Commissioner Peirce’s recent dissent. Her words are the words of a sitting Commissioner, not a critic like me or a business/entrepreneur like Coinbase. Powerful.”

SEC Commissioner Hester Peirce responded to an SEC move to incorporate the DeFi space into its remit. In an official SEC statement, Peirce said,

“Rather than embracing the promise of new technology as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation, and welcome extinction of new technology. Accordingly, I dissent.”

The Day Ahead

SEC v Ripple case-related news will remain the focal point. Investors should track the crypto news wires and Twitter for an SEC reaction to the Ripple response to the SEC filing.

However, a lack of SEC v Ripple case-related news will continue to leave SEC and CFTC activity in the spotlight. Binance and Coinbase (COIN)-related commentary will also move the dial.

Following the SEC’s Friday press release and Hester Peirce’s response, US lawmaker chatter will also need consideration before the April 18 digital assets sub-committee hearing.

XRP Price Action

At the time of writing, XRP was down 0.21% to $0.51901. A mixed start to the day saw XRP rise to an early high of $0.52324 before falling to a low of $0.51640.

XRP sees red.
XRPUSD 160423 Daily Chart

Technical Indicators

XRP needs to move through the $0.5212 pivot to target the First Major Resistance Level (R1) at $0.5252 and the Saturday high of $0.52623. A return to $0.5250 would signal a bullish session. However, SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5303. The Third Major Resistance Level (R3) sits at $0.5394.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5161 in play. However, barring an extended sell-off, XRP should avoid sub-$0.51. The Second Major Support Level (S2) at $0.5120 should limit the downside. The Third Major Support Level (S3) sits at $0.5029.

XRP support levels in play below the pivot.
XRPUSD 160423 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.51394. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above S1 ($0.5161) and the 50-day EMA ($0.51394) would support a breakout from R1 ($0.5252) to target R2 ($0.5303). However, a fall through S1 ($0.5161) and the 50-day EMA ($0.51394) would bring S2 ($0.5120) and the 100-day EMA ($0.50392) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 160423 4 Hourly Chart

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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