XRP Bears to Target Sub-$0.46 on SEC v Ripple Anxiety

Key Insights:

• On Monday, XRP joined the broader market in the red, falling 2.33% to $0.4789.
• While there was no news from the SEC v Ripple case, another Ripple defense team departure tested investor sentiment.
• The technical indicators are bearish, signaling a return to sub-$0.4650.

On Monday, XRP fell by 2.33%. Reversing a 0.62% loss from Sunday, XRP ended the day at $0.4789. Significantly, XRP ended the day at sub-$0.48 for the first time since June 17.

A mixed start to the day saw XRP rise to a first-hour high of $0.4918. Falling short of the First Major Resistance Level (R1) at $0.4974, XRP fell to a late afternoon low of $0.4712. XRP fell through the First Major Support Level (S1) at $0.4832 and briefly through the Second Major Support Level (S2) at $0.4761 before finding support to wrap up the day at $0.4789.

Ripple Defense Team Departure Added to the Bearish Sentiment

It was a quiet Monday session. There were no Court rulings in the ongoing SEC v Ripple case to provide direction. The lack of rulings left investors in a cautious mood, with news of a Ripple defense team departure bearish.

Clayton J. Masterman filed a motion to recuse himself from the case. Masterman follows Kylie Chiseul Kim out the door. Kim withdrew from the SEC v Ripple case in May.

While investors respond negatively to the withdrawal of legal counsel from the defense team, the departures are unlikely to have a bearing on the case.

XRP Amicus Curiae attorney John Deaton had this to say about the news,

“Just got an email of a filing in the Ripple case and I must have admit, I got butterflies in my stomach. But it was just a lawyer withdrawing from the case. To be clear: a lawyer withdrawing means nothing. It’s not a signal that the case settled or anything of substance whatsoever.”

The Day Ahead

It is a busy Tuesday. US consumer confidence and core durable goods orders will draw interest this afternoon. However, the numbers are likely less influential on XRP than the broader market. SEC v Ripple case-related news and Court rulings will remain the key driver.

The XRP Community awaits the Summary Judgment ruling that will likely decide how much power the SEC will have in regulating the digital asset space. A Ripple victory could lead to US legislation that passes the baton over to the CFTC in recognition of a Court ruling that XRP is not a security.

However, despite a firm footing in the case, investor optimism about a Ripple victory waned in recent weeks, leaving XRP at sub-$0.50. The William Hinman speech-related documents went public on June 13, removing the hope of a settlement and raising the chance of a lengthy appeal process should Ripple win the case.

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 up 0.10% to $0.4794. A mixed start to the day saw XRP rise to an early high of $0.4797 before falling to a low of $0.4763.

XRP Technical Indicators

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.4903. The 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA. The EMAs delivered bearish signals.

A bearish cross of the 100-day EMA through the 200-day EMA would support a fall through S1 ($0.4695) to bring S2 ($0.4600) into view. However, a move through R1 ($0.4801) and the 50-day ($0.4903) and 200-day ($0.4914) EMAs would give the bulls a run at the 100-day EMA ($0.4933) and R2 ($0.5012).

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

Resistance & Support Levels