XRP Bears Eye Sub-$0.45 on SEC v Ripple Silence and the Fed

Key Insights:

• On Sunday, XRP rejoined the broader market in the red, falling 0.47% to end the day at $0.4683.
• A lack of SEC v Ripple case-related updates left the broader crypto market to provide direction.
• The technical indicators remained bearish, signaling a return to sub-$0.45.

On Sunday, XRP fell by 0.47%. Reversing a 0.41% gain from Saturday, XRP ended the week down 3.34% to $0.4683. Significantly, XRP fell short of the $0.48 handle for the third consecutive session.

XRP Price Action

At the time of writing, XRP was down 0.30% to $0.4669. A bearish start to the week saw XRP fall from an early high of $0.4690 to a low of $0.4663.

Daily Chart

The Daily Chart showed XRP/USD sitting below the 50-day EMA ($0.4819) while holding above the 200-day EMA ($0.4574), sending near-term bearish but bullish longer-term signals. Notably, the 50-day EMA narrowed to the 200-day EMA and reflected bearish momentum over the near term.

On Sunday, XRP/USD fell through the upper level of the $0.4675 – $0.4615 support band to bring the lower level of the support band ($0.4615) and the 200-day EMA ($0.4574) into view.

Looking at the 14-Daily RSI, the 42.42 reading signaled a bearish trend, aligned with the 50-day EMA and supporting a fall through the lower level of the $0.4675 – $0.4615 support band to test the 200-day EMA ($0.4574).

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at the $0.47 psychological level. XRP/USD sits below 50-day ($0.4738) and the 200-day ($0.4826) EMAs. Significantly, the 50-day EMA pulled back from the 200-day EMA, signaling a fall through the $0.4675 – $0.4615 support band to test buyer appetite at $0.46.

XRP/USD must move through the upper level of the $0.4675 – $0.4615 support band to support a run at the 50-day EMA and 200-day EMAs. An XRP move through the 50-day EMA ($0.4738) would support a breakout from the 200-day EMA ($0.4826) to target the $0.4925 – $0.5000 resistance band into view.

The 14-4H RSI reading of 40.40 indicates a bearish stance and aligns with the EMAs, with selling pressure outweighing buying pressure. Significantly, the RSI signals near-term bearish momentum and a look at sub- $0.46.

SEC v Ripple Silence Leaves XRP on the Back Foot

It was a quiet Sunday session, with no Court rulings from the ongoing SEC v Ripple case to move the dial. The lack of Court rulings left XRP in the hands of the broader crypto market.

Bearish sentiment toward the Fed and the expectation of a continued rise in borrowing costs weighed on investor sentiment.

Regulatory uncertainty and waning optimism over a Ripple win in the SEC v Ripple cases added to the bearish mood.

However, the downside was modest, with Ripple-related news continuing to provide support.

The Day Ahead

It is a quiet Monday session, with no US economic indicators to influence. The lack of US economic indicators will leave Fed chatter to draw interest. Hawkish commentary could test buyer appetite, with FOMC members Barr, Bostic, Daly, and Mester on the calendar to speak today.

While Fed chatter will influence, the SEC v Ripple case will remain the focal point. Investors should monitor SEC and US lawmaker chatter. Binance, SEC v Binance, and Coinbase (COIN)-related news also needs consideration.