XRP Bulls Face Sub-$0.4650 on Pending SEC v Ripple Ruling

Key Insights:

• On Saturday, XRP fell by 1.82% to end the day at $0.48720.
• SEC v Ripple uncertainty remained the drag, with a broad-based crypto pullback adding to the bearish sentiment.
• However, the technical indicators remained bearish, signaling a return to sub-$0.4650.

On Saturday, XRP fell by 1.82%. Reversing a 0.36% gain from Friday, XRP ended the day at $0.48720. Significantly, XRP ended the day at sub-$0.49 for the first time in six sessions.

Bearish throughout the morning, XRP fell from an opening price of $0.49628 to a mid-afternoon low of $0.47883. XRP fell through the First Major Support Level (S1) at $0.4860 to wrap up the day at $0.48720.

Investor Optimism Toward a Ripple Victory Waned Again

It was a quiet Saturday session, with no updates from the ongoing SEC v Ripple case to provide direction. The lack of Court rulings or case-related chatter left investors in a cautious mood, with Court rulings expected at any time.

The Ripple and the broader crypto market await the Summary Judgment that could deliver much-needed clarity on whether XRP and other altcoins are commodities or securities.

Amicus Curiae attorney John Deaton highlighted why the crypto market needs more than just the Howey Test. Responding to a question from Caesar Korvinus, Deaton gave several scenarios for acquiring XRP and how each would affect the classification of XRP.

In one scenario, Deaton acknowledged that XRP would meet the Howey Test. However, Deaton also pointed out that if you did not buy XRP directly from Ripple and had no contract with Ripple, acquiring XRP in the secondary market, XRP would not meet the Howey Test.

The different scenarios demonstrated the intricacies, likely contributing to Judge Torres’s careful deliberation. Significantly, the SEC is going for one size fits all, which isn’t the case.

The Day Ahead

It is a quiet Sunday session, with no US economic indicators to distract investors. However, investors should continue to monitor the crypto news wires for market-moving events.

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 down 0.24% to $0.48604. A bearish start to the day saw XRP fall from an opening price of $0.48656 to a low of $0.48332.

Technical Indicators

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.49201. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 50-day EMA. The EMAs delivered bearish signals.

A bearish cross of the 50-day EMA through the 200-day EMA would support a fall through S1 ($0.4786) to bring S2 ($0.4700) into view. However, a move through the 200-day ($0.49201) and 50-day ($0.49333) EMAs would give the bulls a run at the 100-day EMA ($0.49526) and R1 ($0.4960).

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

Resistance & Support Levels