XRP Bears Eye a Return to $0.43 on SEC v Ripple Stall

Key Insights:

• On Friday, XRP bucked the broader market trend, falling 0.38% to end the day at $0.47300.
• SEC v Ripple silence and Citigroup-related news left XRP in the red.
• The technical indicators remain bearish, signaling a return to sub-$0.40.

On Friday, XRP fell by 0.38%. Partially reversing a 2.13% gain from Thursday, XRP ended the day at $0.4730. Significantly, XRP revisited sub-$0.45 for the first time since May 25.

A bullish start to the session saw XRP rise to an early morning high of $0.4827. XRP broke through the First Major Resistance Level (R1) at $0.4811 before falling to an early afternoon low of $0.4498. XRP fell through First Major Support Level (S1) at $0.4649 and the Second Major Support Level (S2) at $0.4550 before a rebound to end the day at $0.4730.

ETF-Related News and Citigroup- Ripple Chatter Left XRP in the Red

It was a quiet Friday session. There were no Court rulings from the ongoing SEC v Ripple case to draw interest. The lack of Court rulings continued to test buyer appetite as the hopes of a pre-summer Summary Judgment faded.

The lack of Court rulings left XRP in the hands of ETF and Ripple-related news, which were bearish.

Reports of US banking giant Citigroup (C) reviewing its custody partnership with Metaco after one year weighed. Ripple agreed to acquire Swiss crypto custody platform Metaco for $250 million in May. Significantly, the loss of business with multi-national banks would impact Ripple beyond the US borders.

Increased regulatory scrutiny and uncertainty toward the outcome of the SEC v Ripple case could lead to more banks reconsidering existing relationships with Ripple and Ripple-owned entities.

However, ETF news updates had a more significant impact on XRP and the broader market. News of the SEC considering the BTC spot ETF applications lacking clarity and comprehensiveness weighed on investor sentiment.

However, reports of 21Shares, ARK Invest, Blackrock Inc. (BLK), Fidelity, Invesco, Valkyrie, and WisdomTree refiling to accommodate the SEC’s needs supported the partial recovery.

The Day Ahead

It is a quiet Saturday session, with no US economic indicators to draw attention. The lack of US economic indicators will leave SEC v Ripple-related news and Ripple-linked chatter to move the dial.

However, investors should continue to monitor the crypto news wires for ETF, SEC v Binance, and Coinbase (COIN)-related chatter.

XRP Price Action

At the time of writing, XRP was down 1.08% to $0.4679. A bearish start to the day saw XRP fall from an early high of $0.4734 to a low of $0.4647.

XRP Technical Indicators

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.4800. The 50-day EMA pulled back from the 200-day EMA, with the 100-day EMA falling back from the 200-day EMA. The EMAs delivered bearish signals.

A move through the 50-day EMA ($0.4800) would support a breakout from the 100-day EMA ($0.4859), R1 ($0.4872), and the 200-day EMA ($0.4877) to give the bulls a run at R2 ($0.5014). However, failure to move through the 50-day EMA ($0.4800) would leave S1 ($0.4543) and sub-$0.45 Major Support Levels in view. A move through the 50-day would send a bullish signal.

Resistance & Support Levels