XRP Bears in the Driving Seat with SEC v Ripple Ruling Anticipated

Key Insights:

• On Sunday, XRP joined the broader market in the green, rising by 0.62% to end the day at $0.49030.
• There were no SEC v Ripple updates to influence, leaving momentum from the week to wrap up a moderately bullish Monday to Sunday.
• However, the technical indicators remained bearish, signaling a return to sub-$0.4650.

On Sunday, XRP rose by 0.62%. Partially reversing a 1.82% loss from Saturday, XRP ended the week up 0.66% to $0.4903. Significantly, XRP fell short of the $0.50 handle for the second consecutive session.

A bearish start to the day saw XRP fall to a first-hour low of $0.4832. Steering clear of the First Major Support Level (S1) at $0.4790, XRP rose to an early afternoon high of $0.4974. XRP broke through the First Major Resistance Level (R1) at $0.4959 before easing back to end the day at $0.4903.

Ripple Buy Back Rumors and SEC v Ripple Uncertainty Leave XRP Flat

It was a quiet Sunday session. There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of case-related chatter left investors in a cautious mood.

However, rumors of Ripple planning to buy back 10 billion XRP did the rounds.

Ripple Chief Technology Officer David Schwartz had this to say about the rumor,

“We do sometimes buy XRP. But I don’t know of anything specific that this could be referring to. And there’s no official source mentioned.”

XRP Amicus Curiae attorney John Deaton was also unconvinced, saying,

“I don’t believe Ripple is buying back 10B XRP until I hear it from Ripple.”

Ten billion XRP would account for 10% of the total supply. While the source of the buyback story is unknown, Ripple could want to buy back ten billion to support the platform’s services, including the online liquidity (ODL) service.

The Day Ahead

It is a quiet start to the week, with no US economic indicators to distract investors. However, investors should continue to monitor the crypto news wires for market-moving events. Court rulings from the ongoing SEC v Ripple case will remain the focal point.

There has been no activity since the William Hinman speech-related documents went public. While the hopes of a settlement have waned, the hope of a Ripple victory continues to provide price support at current levels. However, with a ruling likely at any time, a high degree of uncertainty over the Court ruling will test buyer appetite.

Beyond SEC v Ripple, SEC v Binance, and Coinbase (COIN) case-related news, US lawmakers and regulatory chatter also need consideration.

XRP Price Action

At the time of writing, XRP was down 0.69% to $0.4869. A bearish start to the day saw XRP fall from an early high of $0.4918 to a low of $0.4838.

Technical Indicators

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.4921. The 50-day EMA converged on the 200-day EMA, with the 100-day EMA narrowing to the 50-day EMA. The EMAs delivered bearish signals.

A bearish cross of the 50-day EMA through the 200-day EMA would support a fall through S1 ($0.4790) to bring S2 ($0.4761) and sub-$0.47 into view. However, a move through the 200-day ($0.4921) and 50-day ($0.4928) EMAs would give the bulls a run at the 100-day EMA ($0.4928) and R1 ($0.4974).

A move through the 50-day EMA would send a bullish signal.

Resistance & Support Levels