XRP Faces Sub-$0.50 on SEC v Ripple Silence and SEC Activity

Key Insights:

• On Sunday, XRP rose by 0.21% to end the session at $0.5212.
• It was a quiet Sunday, with no SEC v Ripple rulings or commentary to provide direction.
• The technical indicators remain bullish, signaling a run at $0.60.

On Sunday, XRP rose by 0.21%. Partially reversing a 0.66% loss from Saturday, XRP ended the week up 3.03% to $0.5212. XRP avoided sub-$0.51 for the third consecutive day while wrapping up the day at the $0.52 handle for the third successive session.

A choppy start to the day saw XRP fall to an early morning low of $0.51604. Finding support at the First Major Support Level (S1) at $0.5161, XRP rose to an early evening high of $0.52455.

However, falling short of the First Major Resistance Level (R1) at $0.5252, XRP eased back to end the session at $0.52120.

Investors Back into Wait and See Mode Leaves XRP Under Pressure

There were no updates from the ongoing  SEC v Ripple case to garner investor interest. The lack of updates left XRP in the hands of the broader crypto market.

Increasing regulatory activity and US lawmaker scrutiny left XRP in a relatively range-bound weekend. However, market conditions could change on Tuesday as investors look toward the digital asset sub-committee hearing on Capitol Hill, where SEC Chair Gary Gensler will deliver testimony.

Chatter relating to the Ripple Liquidity Hub did draw investor interest. On Thursday, Ripple launched the Ripple Liquidity Hub to bring cryptos and fiat closer. However, the product launch omitted XRP. Ripple cited regulator uncertainty for the omission.

Amicus Curiae attorney John Deaton proposed a Twitter Spaces, saying,

“There’s been such a diverse reaction to the news that Ripple’s Liquidity Hub will not include XRP that I believe a Twitter Spaces is warranted. Moon Lamboio and I will host, but all opinions are welcome. Would love for someone with even better knowledge about LH to join.”

The decision to exclude XRP was price bearish and reflected the ongoing effects of US regulatory activity on the digital asset space.

The Day Ahead

Investors should monitor the crypto news wires and Twitter for updates from the ongoing SEC v Ripple case.

However, a lack of SEC v Ripple case-related news will leave SEC and CFTC activity in the spotlight. Binance and Coinbase (COIN)-related commentary will also move the dial.

The next main event is the digital asset sub-committee hearing on Capitol Hill. Gary Gensler will be in the spotlight as US lawmakers question the regulation by enforcement mantra, with FTX and the case against Ripple likely hot topics.

XRP Price Action

At the time of writing, XRP was down 1.65% to $0.51258. A mixed start to the day saw XRP rise to an early high of $0.52104 before falling to a low of $0.50967. XRP fell through the First Major Support Level (S1) at $0.5166 and briefly through the Second Major Support Level (S2) at $0.5121.

Technical Indicators

XRP needs to move through S1 and the $0.5206 pivot to target the First Major Resistance Level (R1) at $0.5252. A return to $0.52 would signal a bullish session. However, SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5291 and resistance at $0.53. The Third Major Resistance Level (R3) sits at $0.5376.

Failure to move through S1 and the pivot would leave the Second Major Support Level (S2) at $0.5121 in play. However, barring an extended sell-off, XRP should avoid sub-$0.5050 and the Third Major Support Level (S3) at $0.5036.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.50556. The 50-day EMA pulled further away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A move through the 50-day EMA ($0.51488) and S1 ($0.5166) would support a breakout from R1 ($0.5252) to target R2 ($0.5291) and $0.53. However, failure to move through the 50-day EMA ($0.51488) would leave S2 ($0.5121) and the 100-day EMA ($0.50556) in view. A move through the 50-day EMA would send a bullish signal.