XRP Price Action to Remain Bearish Over FTX and SEC v Ripple Case

Key Insights:

• On Saturday, XRP fell for the seventh session from eight, ending the day at $0.36227.
• Hopes of an FTX bailout took another hit, with news of an FTX hack weighing on XRP and the broader crypto market.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.30.

On Saturday, XRP slid by 5.55%. Following a 2.77% loss on Friday, XRP ended the day at $0.36227. Notably, XRP ended the day at sub-$0.40 for the fourth consecutive session.

Bearish throughout the session, XRP fell from an early high of $0.38333 to a late afternoon low of $0.35902. XRP fell through the First Major Support Level (S1) at $0.3668 to end the session at $0.36227.

Going into the weekend, FTX remained the focal point. The collapse of one of the leading exchanges and news of a hack left the crypto market under pressure, with bad news following bad news in recent sessions.

While the hopes of an FTX bailout remain, the chances of a successful bailout will likely diminish over time, leading to increased contagion risk.

From the ongoing SEC v Ripple case, there were no updates to distract investors from the FTX saga that continues to grab the headlines.

XRP Investor Focus to Turn to November 30 Summary Judgment Reply Briefs

Amicus Brief filings ground to a halt this weekend following the SEC motion to prevent filings after November 11.

With no filings to consider, the focus now turns to the Summary Judgement Reply briefs. Both parties must submit their briefs by November 30. Between now and the submission, updates from the ongoing SEC v Ripple case may be few and far between.

This month, the Court granted an SEC motion to extend the filing date of the Summary Judgment Reply briefs to November 30. As a result, Court’s schedule extends into 2023.

The ongoing FTX saga and uncertainty over the outcome of the SEC v Ripple case will likely leave XRP under pressure. The collapse of FTX has dented investor confidence and fears of regulatory retribution could give the SEC more incentive in its fight against Ripple.

Today, FTX will remain the key driver. Barring unexpected updates from the SEC v Ripple case, XRP will remain in the hands of the broader crypto market.

XRP Price Action

At the time of writing, XRP was up 0.54% to $0.36422. A mixed start to the day saw XRP fall to an early low of $0.36111 before rising to a high of $0.36609.

Technical Indicators

XRP needs to move through the $0.3682 pivot to target the First Major Resistance Level (R1) at $0.3774 and the Saturday high of $0.38333. A return to $0.37 would signal a bullish session, though FTX-related news updates will have to be crypto-friendly.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.3925 and $0.40. The Third Major Resistance Level (R3) sits at $0.4168.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3531 in play. However, barring another extended sell-off, XRP should avoid sub-$0.3450 and the Second Major Support Level (S2) at $0.3439. The Third Major Support Level (S3) sits at $0.3196.

Throughout the session, FTX news updates will remain the key driver, with any negative news linked to the FTX collapse likely to deliver an extended sell-off.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.40583. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.3774) would bring R2 ($0.3925) and the 50-day EMA ($0.40583) into play. However, failure to move through the 50-day EMA would leave XRP under pressure and S1 ($0.3531) in view.