XRP Bears Eye a Return to $0.3350 on SEC v Ripple Uncertainty

Key Insights:

• On Friday, XRP rose by 1.91% to end the day at $0.34454.
• XRP found support from the broader crypto market, with no updates from the SEC v Ripple case to influence.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.33.

On Friday, XRP rose by 1.91%. Partially reversing a 2.80% loss from Thursday, XRP ended the day at $0.34562. Significantly, XRP revisited sub-$0.34 for the second consecutive session.

Tracking the broader crypto market, XRP fell to a mid-morning low of $0.33176. Finding support at the First Major Support Level (S1) at $0.3318, XRP rose to a late high of $0.34562. However, coming up short of the First Major Resistance Level (R1) at $0.3463, XRP eased back to end the day at $0.34454.

There were no updates from the ongoing SEC v Ripple case to distract investors from the US economic calendar.

XRP Finds Crypto Market and NASDAQ Index Support

US economic indicators continued providing XRP and the broader crypto market with support. The US jobs report and ISM Non-Manufacturing PMI drove demand for riskier assets.

However, XRP fell short of $0.35 for the second consecutive session, with uncertainty toward the SEC v Ripple case pegging XRP back.

A lack of updates leaves investors to look toward the Court filing on January 9. Parties must file oppositions to Omnibus Motions to Seal. While the filing is on January 9, two pending Court rulings could decide the outcome of the SEC v Ripple case.

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.

XRP Price Action

At the time of writing, XRP was down 0.49% to $0.34286. A mixed start to the day saw XRP rise to an early high of $0.34544 before falling to a low of $0.34244.

Technical Indicators

XRP needs to avoid a fall through the $0.3406 pivot to target the First Major Resistance Level (R1) at $0.3495 and $0.35. 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 $0.3545 and resistance at $0.36. The Third Major Resistance Level (R3) sits at $0.3684.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3357 into play. However, barring an extended sell-off, XRP should avoid sub-$0.3250. The Second Major Support Level (S2) at $0.3268 should limit the downside. The Third Major Support Level (S3) sits at $0.3129.

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 $0.34384. 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 ($0.34384) would support a breakout from 100-day EMA ($0.34826) and R1 ($0.3495) to target R2 ($0.3545). However, failure to move through the 50-day EMA ($0.34384) would bring the Major Support Levels into play.