XRP Bears Eye a Six Day Losing Streak on SEC Regulation Mantra

Key Insights:

• On Sunday, XRP extended the losing streak to five sessions, falling by 0.78% to end the day at $0.6235.
• US regulatory uncertainty left XRP on the back foot.
• The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Sunday, XRP fell by 0.78%. Following a 1.04% decline on Saturday, XRP ended the week down 11.52% to $0.6235. XRP extended the losing streak to five sessions.

XRP Price Action

This morning, XRP was up 0.43% to $0.6262. A mixed start to the day saw XRP fall to an early low of $0.6204 before rising to a high of $0.6287.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6530 – $0.6417 resistance band. However, XRP remained above the 50-day ($0.6244) and 200-day ($0.5161) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA narrowed to the 200-day EMA, a bearish price signal.

Looking at the 14-Daily RSI, the 42.32 reading sends bearish XRP price signals, signaling a fall through the 50-day EMA ($0.6244) to bring the $0.5900 – $0.5750 support band into play.

4-Hourly Chart

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

XRP sits below the 50-day ($0.6738) and 200-day ($0.6514) EMAs on five days in the red, sending bearish near and longer-term price signals. The 50-day EMA narrowed on the 200-day EMA, signaling a fall toward the $0.5900 – $0.5750 support band. However, an XRP move through the 0.6417 – $0.6530 resistance band and the 200-day EMA ($0.6514) would give the bulls a run at the 50-day EMA ($0.6738).

The 33.10 14-4H RSI reading reflects the bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a fall through the $0.5900 – $0.5750 support band.

US Regulatory Uncertainty Leaves XRP in a Bear Trap

It was a quiet Sunday session. There were no crypto events to influence investor sentiment. However, the SEC v Ripple Court ruling remained a hot topic. With the markets resigned to an SEC appeal, Amicus Curiae attorney John E Deaton responded to a Bill Morgan tweet regarding the Judge Torres ruling, saying,

“Excellent, explaining that Torres didn’t make a distinction between the different sales out of thin air. She took each type of sale CHOSEN and DEFINED by the SEC and applied the Howey Test. I’m willing to bet significant funds she doesn’t get reversed on appeal.”

While Deaton shared his optimistic view, the markets dislike uncertainty. XRP struck a 2023 high of $0.9327 in response to the Court ruling. However, XRP is down 33% from the July 13 high on speculation of an SEC appeal.

The Day Ahead

After a quiet weekend, investors should track the SEC v Ripple case-related chatter. While optimistic views on the likely outcome of an appeal would provide support, an SEC appeal would be a bearish price scenario.

The SEC is currently waging an offensive against leading players in the digital asset space, including Binance and Coinbase. One Court ruling in favor of the SEC would throw the crypto market into disarray and water down the Judge Torres ruling,

However, investors should continue to track SEC activity and US lawmaker chatter. Progress on Capitol Hill to deliver a crypto regulatory framework would be a bullish price scenario.

ETF, Binance, and Coinbase-related news also need consideration.