XRP Bears Remain in the Driving Seat on SEC Appeal Uncertainty

Key Insights:

• On Sunday, XRP wrapped up a choppy week, gaining by 0.74% to end the day at $0.7385.
• Uncertainty over SEC plans to appeal the SEC v Ripple Court ruling capped the upside.
• The technical indicators remain bullish, supporting a return to $0.80.

On Sunday, XRP rose by 0.74%. Partially reversing a 5.06% slide from Saturday, XRP ended the week down 1.24% to $0.7385. XRP ended a three-day losing streak.

XRP Price Action

This morning, XRP was down 0.20% to $0.7370. A bearish start to the day saw XRP fall from an opening price of $0.7388 to a low of $0.7368.

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 ($0.5872) and 200-day ($0.4919) 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 week left XRP/USD at sub-$0.75, bringing sub-$0.70 into play.

Looking at the 14-Daily RSI, the 62.55 reading sends bullish XRP price signals, aligning with the EMAs. The RSI supports a move through $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 Sunday session, XRP/USD remains below the $0.7870 – $0.7737 resistance band.

However, XRP also sits below the 50-day EMA ($0.7402) while holding above the 200-day EMA ($0.6134), sending bearish near-term but bullish longer-term price signals. Significantly, the 50-day EMA narrowed on the 200-day EMA, signaling a fall toward $0.70.

The 14-4H RSI reading of 38.46 sends bearish XRP price signals, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a near-term bullish trend reversal and a return to sub-$0.70.

Market Jitters Ease over the Chance of an SEC Appeal Win

It was a quiet Sunday session, with no updates from the SEC v Ripple case to draw interest. Significantly, there were no filings from the SEC to appeal the Judge Torres ruling on Programmatic Sales.

SEC appeal-related chatter throughout the weekend eased investor jitters over an SEC appeal. Pro-XRP and Amicus Curiae attorney John E Deaton shared a favorable synopsis of an SEC appeal and the possible outcomes, saying,

“An appeal is not even close to being a setback. First, it will be two years from now before a decision is issued by the Second Circuit if it’s appealed. The Torres Decision is the law until then – at least in the Second Circuit. Second, even if the Second Circuit said Torres was wrong regarding her application of the third Howey factor (which I predict they won’t), that doesn’t mean the SEC wins on Programmatic Sales (sales on exchanges).”

Deaton went on to say,

“All that happens is that Torres then applies the other two factors and could likely still rule the SAME EXACT WAY, concluding the SEC didn’t satisfy the common enterprise factor – which is a more difficult factor to meet IMO than the third factor. Don’t let anyone underestimate how significant this win is for XRP and XRP Holders and Ripple.”

Despite the optimistic viewpoint, investors will likely be cagey, which could leave XRP on the back foot over the near term.

The Day Ahead

SEC v Ripple Court ruling-related chatter will remain the focal point. Uncertainty over an SEC appeal left XRP in a relatively tight range on Sunday. We expect the uncertainty surrounding an SEC appeal to test investor sentiment this morning.

However, US lawmaker chatter and Binance and Coinbase-related news will also need consideration.