XRP Bears to Target Sub-$0.3300 as SEC v Ripple Court Date Looms

Key Insights:

• On Sunday, XRP fell by 1.35% to end the week with an 8.30% loss.
• Uncertainty toward the outcome of the SEC v Ripple case and the broader crypto market left XRP in the red for the session.
• The technical indicators remain bearish, with XRP sitting below the 50-day EMA, supporting a near-term decline to $0.30.

On Sunday, XRP fell by 1.35%. Reversing a 0.82% gain from Saturday, XRP ended the week down by 8.30% to $0.34967. The bearish session left XRP at sub-$0.35 for the first time since November 13.

A bullish start to the day saw XRP rise to an early morning high of $0.35500. Coming up short of the First Major Resistance Level (R1) at $0.3585, XRP fell to a late afternoon low of $0.34756. XRP fell through the First Major Support Level (S1) at $0.3489 before a late partial recovery to end the day at $0.34967.

Sec v Ripple Uncertainty, Regulatory Risk, and Recession Fear Weighed

It was another quiet session, with no material updates from the ongoing SEC v Ripple case to influence.

Since the Summary Judgment Reply brief filings, XRP has been under pressure. A Court ruling could come at any time. As more time passes, hopes of a settlement have also faded. The collapse of FTX and the implications on the broader market have likely pressured the SEC to win the case.

However, the William Hinman speech-related documents remain a trump card for the defendants. The SEC showed its hand by filing more than six motions to shield the speech-related documents from the public under the attorney-client privilege.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

A move to trial would likely bring the documents into the public domain, which could force the SEC into a settlement. It all hinges on the Court ruling.

Today, investor jitters ahead of the next Court date on December 22 will likely continue to test XRP price support. However, the broader crypto market and external market forces will also influence.

Fears of an economic recession, regulatory risk, and fallout from the collapse of FTX continue to peg the broader market back from a sustainable recovery.

XRP Price Action

At the time of writing, XRP was down 2.38% to $0.34134. A bearish start to the day saw XRP rise to an early high of $0.35326 before sliding to a low of $0.33924.

XRP fell through the First Major Support Level (S1) at $0.3465 and the Second Major Support Level (S2) at $0.3433.

Technical Indicators

XRP needs to move through the Major Support Levels and the $0.3507 pivot to target the First Major Resistance Level (R1) at $0.3539 and the Sunday high of $0.35500. A return to $0.35 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3582 and $0.36 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3656.

Failure to move through the Major Support Levels and the pivot would give the bears a run at the Third Major Support Level (S3) at $0.3359. However, barring another extended sell-off, XRP should avoid sub-$0.33.

Without updates from the SEC v Ripple case, XRP will likely sit in the hands of the broader crypto market and the crypto news wires.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.36893. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.3539) would support a breakout from R2 ($0.3582) to bring R3 ($0.3656) and the 50-day EMA ($0.36893) into view. However, failure to return to $0.35 would leave XRP at risk of a fall to sub-$0.33.