XRP Bears Eye Sub-$0.46 on US CPI Report and SEC v Ripple News

Key Insights:

• On Tuesday, XRP saw red for the second time in five sessions, falling 0.54% to end the day at $0.4757.
• There were no updates from the SEC v Ripple case to influence, leaving SEC v LBRY case-related news to influence.
• However, the nearer-term technical indicators remained bullish, leaving $0.50 in view.

On Tuesday, XRP fell by 0.54%. Partially reversing a 2.14% gain from Monday, XRP ended the day at $0.4757. Significantly, XRP fell short of the $0.48 handle for the fourth time in five sessions.

XRP Price Action

At the time of writing, XRP was down 0.06% to $0.4754. A range-bound start to the day saw XRP rise to an early high of $0.4758 before falling to a low of $0.4750.

Daily Chart

The Daily Chart showed XRP/USD sitting below the 50-day EMA ($0.4818) while holding above the 200-day EMA ($0.4579), 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.

Despite the bearish Tuesday session, XRP/USD avoided the upper level of the $0.4675 – $0.4615 support band to keep the 50-day EMA ($0.4819) in view. A move through the 50-day EMA would give the bulls a run at the lower level of the $0.4925 – $0.5000 resistance band.

However, failure to move through the 50-day EMA would leave the $0.4675 – $0.4615 support band and the 200-day EMA ($0.4579) in view.

Looking at the 14-Daily RSI, the 47.02 reading signaled a moderately bearish trend, aligned with the 50-day EMA and supporting a fall through the $0.4675 – $0.4615 support band to test the 200-day EMA ($0.4579).

4-Hourly Chart

Looking at the 4-Hourly Chart, XRP/USD faces strong resistance at the $0.48 psychological level. XRP/USD sits above the 50-day EMA ($0.4742) while remaining below the 200-day EMA ($0.4817). Significantly, the 50-day EMA narrowed to the 200-day EMA, signaling a move through the 200-day EMA ($0.4817) to target the lower level of the $0.4925 – $0.5000 resistance band.

However, a fall through the 50-day EMA ($0.4742) would bring the $0.4675 – $0.4615 support band into play.

The 14-4H RSI reading of 55.33 indicates a bullish trend and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum, supporting a run at the 200-day EMA and the resistance band.

SEC v LBRY Case-Related News Left XRP Trailing the Broader Market

It was a quiet Tuesday session. There were no Court rulings from the ongoing SEC v Ripple case to influence. The lack of Court rulings left XPP in the hands of the crypto news wires.

While there were no SEC v Ripple updates to consider, the pending Judge Torres Summary Judgment remained the focal point. Ripple Chief Technology Officer David Schwartz responded to John Deaton’s assessment of the Summary Judgment timeline, saying,

“I know waiting is annoying, and we’d love to have a ruling on summary judgment motions as soon as possible, but I would think anything was wrong, unusual, or strange until at least the end of September.”

However, Deaton and Schwartz failed to ease investor jitters, with the final judgment from the LBRY case likely spooking investors.

The Day Ahead

It is a busy Wednesday session. The US CPI Report will be in focus. While the crypto market decouples from the NASDAQ Composite Index, the influence of the Fed on investor appetite remains ever-present.

Sticky US inflation would support a more hawkish post-summer Fed monetary policy outlook, a bearish scenario for riskier assets.

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