XRP Bears Continue to Target $0.3350 Ahead of January 9 Court Filings

Key Insights:

• On Saturday, XRP slipped by 0.21% to end the day at $0.34382.
• There were no updates from the SEC v Ripple case or crypto market events to provide direction, leaving XRP range bound.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.3350.

On Saturday, XRP slipped by 0.21%. Partially reversing a 1.91% gain from Friday, XRP ended the day at $0.34382. Significantly, XRP avoided sub-$0.34 for the first time in three sessions.

A bearish start to the day saw XRP fall to an early low of $0.34151. Steering clear of the First Major Support Level (S1) at $0.3357, XRP rose to an early evening high of $0.34554. However, coming up short of the First Major Resistance Level (R1) at $0.3495, XRP eased back to end the day at $0.34382.

There were no updates from the ongoing SEC v Ripple case to provide direction.

XRP Moves Sideways as SEC v Ripple Uncertainty Hits Buyer Appetite

A quiet Saturday session left XRP in a range-bound session. Following the US Jobs Report and ISM Non-Manufacturing PMI on Friday, fears of an economic recession outweighed hopes of a less hawkish Fed on Saturday.

While Fed monetary policy and the macroeconomic environment remain focal points, the SEC v Ripple case will continue to be the driving force.

The lack of updates from the SEC v Ripple case led trading volumes lower on Saturday. With the parties having to file oppositions to Omnibus Motions to Seal on Monday, uncertainty toward the outcome of the case will continue to limit the upside.

However, two Court rulings would move the dial and breakdown support or resistance levels. Investors await a ruling on the SEC motion to redact content from the William Hinman speech-related documents, while the parties also await the Court ruling on the Summary Judgment Reply briefs.

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, silence on the SEC v Ripple case will leave XRP in the hands of the broader crypto market. Investors will need a catalyst to break out from the recent ranges.

XRP Price Action

At the time of writing, XRP was down 0.79% to $0.34110. A mixed start to the day saw XRP rise to an early high of $0.34459 before falling to a low of $0.33666.

XRP fell through the First Major Support Level (S1) at $0.3417 and briefly through the Second Major Support Level (S2) at $0.3396.

Technical Indicators

XRP needs to move through S1 and the $0.3436 pivot to target the First Major Resistance Level (R1) at $0.3457. A return to $0.3450 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3477 and resistance at $0.35. The Third Major Resistance Level (R3) sits at $0.3517.

Failure to move through S1 and the pivot would bring the Second Major Support Level (S2) at $0.3396 back into play. However, barring an extended sell-off, XRP should avoid sub-$0.3350. The Third Major Support Level (S3) at $0.3356 should limit the downside.

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 $0.34365. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.34365) would support a breakout from R1 ($0.3457) to target the 100-day EMA ($0.34766) and R2 ($0.3477). However, failure to move through the 50-day EMA ($0.34365) would leave XRP under pressure.