XRP Bulls Need of an SEC v Ripple Catalyst to Retarget $0.75

Key Insights:

• On Thursday, XRP joined the broader market in the red, falling 0.32% to end the day at $0.7140.
• SEC Chair Gary Gensler commentary and SEC plans to appeal the SEC v Ripple ruling left XRP in the red.
• The shorter-term technical indicators remain bearish, supporting a return to sub-$0.65.

On Thursday, XRP fell by 0.32%. Partially reversing a 0.99% gain from Wednesday, XRP ended the day at $0.7140. However, XRP avoided sub-$0.70 for the first time in four sessions.

XRP Price Action

This morning, XRP was up 0.18 to $0.7153. A mixed start to the day saw XRP fall to an early low of $0.7115 before rising to a high of $0.7187.

Daily Chart

The Daily Chart showed XRP/USD remained below the $0.7870 – $0.7737 resistance band, with XRP in consolidation mode. However, XRP sat well above the 50-day ($0.6048) and 200-day ($0.5003) 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 start to the week left XRP within reach of the $0.6530 – $0.6417 support band.

Looking at the 14-Daily RSI, the 58.82 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. After the bearish Thursday session, XRP/USD remains below the $0.7870 – $0.7737 resistance band.

XRP also sits below the 50-day EMA ($0.7202) while holding above the 200-day EMA ($0.6333), 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 $0.65.

The 14-4H RSI reading of 48.90 signals bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling the near-term bullish trend reversal and a run at the $0.6530 – $0.6417 support band.

SEC Chair Gary Gensler Delivered Another Scathing Assessment of Cryptos

SEC Chair Gary Gensler was back in front of a camera, giving an interview to Bloomberg. The SEC Chair had this to say about crypto investing,

“This field of crypto investing, a lot of investors should be aware it’s not only a highly speculative asset class. It’s also one that they currently should not assume that they’re getting the protections of the securities laws even though the securities laws apply to many of those tokens without prejudging…”

Gensler went on to say,

“The platforms often are comingling and trading against you and have market makers on the other side of the trades. This is a field rife with fraud, rife with hucksters, and there are good faith actors as well but there are far too many that aren’t.”

On the issue of an SEC appeal, Gensler said that a discussion would take place should staff make a recommendation.

While the threat of an SEC appeal lingers, Ripple continued to expand, with the news hitting the wires of a Catalyze Research–Ripple strategic partnership. Catalyze Research is a Web3 and blockchain tech consulting firm. The partnership aims to bolster the presence of the XRP Ledger (XRPL) in South Korea.

However, the news failed to deliver a breakout session, with the institutional sales component of the SEC v Ripple case also a drag.

The Day Ahead

SEC v Ripple Court ruling-related chatter will continue to draw interest as investors await updates on the SEC appeal plans.

However, we expect US lawmaker chatter and Binance and Coinbase-related news to move the dial.

This week, XRP largely ignored the Fed and better-than-expected US economic indicators.