XRP Bears to Retarget $0.65 as Crypto Investor Sentiment Deteriorates

Key Insights:

• On Wednesday, XRP slid by 3.08% to end the day at $0.6849.
• Binance-related news weighed on investor sentiment, with the US Justice Department considering charging Binance for fraud.
• The shorter-term technical indicators remain bearish, supporting a return to sub-$0.65.

On Wednesday, XRP slid by 3.08%. Reversing a 1.20% gain from Tuesday, XRP ended the day at $0.6849. XRP ended the day at sub-$0.70 for the second time since the SEC v Ripple Court ruling.

XRP Price Action

Daily Chart

The Daily Chart showed XRP/USD sat below the $0.7870 – $0.7737 support band. However, XRP sat well above the 50-day ($0.6246) and 200-day ($0.5118) 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 Wednesday sell-off left XRP within reach of the $0.6530 – $0.6417 support band.

Looking at the 14-Daily RSI, the 52.25 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 the 50-day EMA ($0.7045). The bearish Wednesday session left XRP/USD below the $0.7870 – $0.7737 resistance band.

XRP also sits below the 50-day EMA ($0.7045) while holding above the 200-day EMA ($0.6541), sending bearish near-term but bullish longer-term price signals. The 50-day EMA narrowed on the 200-day EMA, signaling a fall toward $0.65.

The 14-4H RSI reading of 38.73 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 and the 200-day EMA ($0.6541).

US Justice Department Considers Charging Binance for Fraud

It was another busy session on Wednesday, with the US sovereign rating downgrade and the crypto news wires moving the dial.

The news hit the wires on Wednesday of the US Justice Department considering fraud charges against Binance. Concerns over the impact of charges on Binance leave the DoJ torn between filing charges or imposing a fine or a non-prosecution agreement. Fears of a run and the cost to customers raise the chances of alternative punitive measures.

While the news left XRP in the red, the SEC v Terraform Labs remained an area of interest. Ripple Chief Legal Officer Stuart Alderoty considered the recent comments from the Court, saying,

On closer read, 1/ the Terra Judge actually agrees that orange groves alone are not securities without promises to cultivate the groves and share the profits. 2/ There needs to be an agreement between contracting parties for there to be an investment contract.”

Alderoty went on to say,

“3/ Tokens alone that are not intermingled with other rights and promises are not themselves securities. 4/ The comment about the Ripple ruling is unnecessary, confusing, and non-binding.”

The comments will provide brief relief as SEC plans to appeal the Judge Torres ruling remains a headwind.

The Day Ahead

SEC v Ripple Court ruling-related chatter will remain the focal point. However, investors should continue to monitor the crypto news wires. SEC activity and US lawmaker chatter will move the dial.

Terra Labs v SEC, ETF, Binance, and Coinbase-related news also need consideration