XRP Bears Remain in Control Despite SEC Appeal Silence and the Fed

Key Insights:

• On Wednesday, XRP gained 0.99% to end the day at $0.7163
• SEC silence and the Fed supported a bullish session.
• However, the shorter-term technical indicators remain bearish, supporting a return to sub-$0.65.

On Wednesday, XRP gained 0.99%. Following a 0.95% rise on Tuesday, XRP ended the day at $0.7163. XRP avoided sub-$0.69 for the first time in three sessions.

XRP Price Action

This morning, XRP was down 0.74% to $0.7111. A bearish start to the day saw XRP fall from an opening price of $0.7164 to a low of $0.7082.

Daily Chart

The Daily Chart showed XRP/USD remained below the $0.7870 – $0.7737 resistance band, with XRP under selling pressure. However, XRP sat well above the 50-day ($0.6002) and 200-day ($0.4981) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled further away from the 200-day EMA, affirming a bullish near-term trend. While the EMAs send bullish signals, the bearish start to the week left XRP within reach of the $0.6530 – $0.6417 support band.

Looking at the 14-Daily RSI, the 58.19 reading sends bullish XRP price signals, aligning with the EMAs. The RSI supports a run at $0.75 to bring the $0.7870 – $0.7737 resistance band into play.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.75. Despite the bullish Wednesday session, XRP/USD remains below the $0.7870 – $0.7737 resistance band.

XRP also sits below the 50-day EMA ($0.7211) while holding above the 200-day EMA ($0.6281), sending bearish near-term but bullish longer-term price signals. Significantly, the 50-day EMA narrowed on the 200-day EMA, signaling a move toward $0.65.

The 14-4H RSI reading of 46.37 signals bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a run at the $0.6530 – $0.6417 support band.

The Fed and Fed Chair Powell Deliver Price Support

It was a big day for the global financial markets, with investors hoping for a final Fed interest rate hike in the monetary policy tightening cycle.

In line with market expectations, the Fed raised the Fed Funds Rate by 25 basis points. However, Fed Chair Powell left the door ajar for a September hike, saying,

“It is certainly possible that we would raise the (Fed) funds rate again at the September meeting if the data warranted, and I would also say it’s possible that we would choose to hold steady at that meeting.”

Despite the Powell comments, hopes of softer inflation during the summer break eased the fear of further rate hikes. Powell also highlighted that central bank staff are no longer forecasting a recession, supporting the bets on a soft landing, and limiting the impact of the policy outlook on investor sentiment.

While the Fed interest rate decision was the main event, US lawmakers were also vocal on the regulatory void plaguing the US digital asset space.

On Wednesday, Chairman Patrick McHenry delivered opening remarks at a session to mark up comprehensive digital asset market structure legislation.

Amicus Curiae attorney John Deaton had this to say about the regulatory void,

“You have this bill along with Senator Lummis and Senator Gillibrand’s bill. Gary Gensler and all SEC Commissioners should take notice. Congress intends to fill the regulator gap Gensler admitted existing during his confirmation hearing. It’s the same regulatory gap that was discussed in the Hinman speech emails. It’s time to demonstrate a faithful allegiance to the law and honor your core mission of investor protection.”

While an SEC threat of an appeal remains a headwind, clarity in the regulatory landscape would be a bullish price scenario.

The Day Ahead

SEC v Ripple Court ruling-related chatter will remain the focal point as investors await updates on the SEC appeal plans.

However, we expect US lawmaker chatter and Binance and Coinbase-related news to move the dial.