XRP Faces Sub-$0.40 as Uncertainty Toward SEC v Ripple Case Returns

Key Insights:

• On Sunday, XRP fell by 2.73% to end the week at $0.45765.
• Bearish sentiment from the broader market left XRP in the red for the week, while the SEC v Ripple case left investors on a cautious footing.
• The technical indicators are bearish, with XRP sitting below the 200-day EMA, signaling a return to sub-$0.40.

On Sunday, XRP fell by 2.73%. Following a 0.81% loss on Saturday, XRP ended the week down 2.42% to $0.45765. Notably, XRP ended the session at sub-$0.46 for the first time in six sessions.

A range-bound morning saw XRP rise to a mid-morning high of $0.47303. Coming up short of the First Major Resistance Level (R1) at $0.4801, XRP slid to a late low of $0.45340. XRP fell through the First Major Support Level (S1) at $0.4638 and briefly through the Second Major Support Level (S2) at $0.4570.

XRP struggled throughout the weekend, with a lack of updates from the ongoing SEC v Ripple case leaving XRP in the red for the week.

Investor Jitters Return as the SEC v Ripple Saga Nears Its End

In recent months, the Court has dealt several blows to the SEC case and its chance to classify XRP and others as securities.

The William Hinman speech-related documents, the numerous Amicus brief filings, and the affidavit all paint a grim picture for the SEC and SEC Chair Gary Gensler.

However, while the odds seem stacked against the SEC, there is always the chance of a surprise outcome. The uncertainty will keep XRP holders on tenterhooks with a series of Court dates on the horizon.

Between now and November 15, one area of investor interest could be how the SEC progresses in shielding content from the Hinman speech-related documents.

This month, the SEC turned over the Hinman speech-related docs to the Defendants. However, the SEC requested redactions that, should the Court agree, could limit the damage to the SEC case.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was up 0.12% to $0.45818. A mixed morning saw XRP fall to an early low of $0.44912 before rising to a high of $0.46090.

Technical Indicators

XRP needs to move through the $0.4614 pivot to take a run at the First Major Resistance Level (R1) at $0.4693 and the Sunday high of $0.47303. An XRP return to $0.4650 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4810 and last week’s high of $0.48297. The Third Major Resistance Level (R3) sits at $0.5006.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4497 in play. However, barring an extended sell-off, XRP should avoid sub-$0.4450 and the Second Major Support Level (S2) at $0.4417. The Third Major Support Level (S3) sits at $0.4221.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.45996. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

A move through the 200-day EMA ($0.45996) would give the bulls a run at the 50-day ($0.46454) and the 100-day ($0.46633) EMAs and R1 ($0.4693). However, a failure to move through the 200-day EMA ($0.45996) would leave S1 ($0.4497) in view.