XRP Bears Eye Sub-$0.46 as SEC v Ripple Silence Weighs

Key Insights:

• On Wednesday, XRP slid by 2.39% to end the day at $0.4775.
• Recessionary jitters and hawkish FOMC meeting minutes left XRP and the crypto market in the red mid-week.
• The technical indicators turned bearish, signaling a return to sub-$0.45.

On Wednesday, XRP slid by 2.39%. Following a 0.41% loss on Tuesday, XRP ended the day at $0.4775.

A bullish start to the day saw XRP rise to an early high of $0.4920. XRP tested the lower level of the $0.4925 – $0.5000 resistance band before hitting the reverse. The reversal saw XRP fall to a mid-afternoon low of $0.4698. Significantly, XRP fell through the 200-day EMA ($0.4868) and the 50-day EMA ($0.4829) to wrap up the day at $0.4775.

XRP Price Action

At the time of writing, XRP was up 0.04% to $0.4777. A mixed start to the day saw XRP fall to an early low of $0.4792 before finding support.

Daily Chart

The Daily Chart showed XRP/USD sitting below the 50-day EMA ($0.4848) while holding above the 200-day EMA ($0.4571). The mid-week pullback also saw XRP/USD fall from the lower level of the $0.4925 – $0.5000 resistance band, sending bearish near-term signals.

Notably, the 50-day EMA narrowed to the 200-day EMA and reflected bearish momentum.

Looking at the 14-Daily RSI, the 45.71 reading signaled a moderately bearish trend, aligned with the 50-day EMA and supporting a fall to the upper level of the $0.4675 – $0.4615 support band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the BTC/USD faces strong resistance at the $0.48 psychological level. BTC/USD sits below the 200-day ($0.4863) and 50-day ($0.4818) EMAs. Significantly, the 50-day EMA fell back from the 200-day EMA, signaling a run at the upper level of the $0.4675 – $0.4615 support band.

XRP/USD has to move through the 50-day EMA to break out from the 200-day EMA to target the $0.4925 – $0.5000 resistance band.

The 14-4H RSI reading of 45.67 indicates a moderately 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 Wednesday session, with no Court rulings from the ongoing SEC v Ripple case to draw interest. The lack of Court rulings raises the prospect of the case extending into September, which would continue to test investor sentiment.

The lack of progress in the ongoing SEC v Ripple case left XRP in the hands of the crypto news wires.

Increasing recessionary fears, hawkish FOMC meeting minutes, and increasing regulatory scrutiny weighed on investor sentiment.

The Day Ahead

It is a busy Thursday session. US economic indicators will provide direction this afternoon. US ADP nonfarm employment change and ISM Non-Manufacturing PMI numbers will move the dial as investors look for reasons for the Fed to hit the brakes.

However, the SEC v Ripple case will remain the focal point, with SEC and US lawmaker chatter, SEC v Binance and Coinbase (COIN)-related news also needing consideration.