XRP Price Pressure Builds as the SEC v Ripple Case Takes a Bizarre Twist

Key Insights:

• On Wednesday, XRP slipped by 0.40%, following a 2.16% loss from Tuesday.
• Crypto market forces provided direction as investors responded to US data and corporate earnings.
• The technical indicators remain bullish, with XRP currently sitting at the 50-day EMA.

On Wednesday, XRP slipped by 0.40%. Following a 2.16% slide from Tuesday, XRP ended the day at $0.3697.

A bearish start to the day saw XRP slide to a day low of $0.3629. Steering clear of the First Major Support Level (S1) at $0.3607, XRP rallied to a high of $0.3774.

However, falling short of the First Major Resistance Level (R1) at $0.3878, XRP slid back to end the day at sub-$0.37.

US corporate earnings and economic indicators failed to deliver prolonged support, with XRP coughing gains after the US market close.

On Wednesday, fears of an economic recession subsided. The all-important ISM Non-Manufacturing PMI unexpectedly increased in July, a positive signal for the US economy.

SEC v Ripple Updates Fail to Inspire Investors Focused on the US

In July, the ISM Non-Manufacturing PMI unexpectedly rose from 55.3 to 56.7. Economists forecast a PMI of 53.5. With services accounting for more than 70% of the US economy, the numbers also delivered the FOMC hawks a reason to skew towards a 75% basis point rate hike in September.

Fears of a more hawkish Fed likely contributed to the late pullback, as investors locked in profits.

US corporate earnings also delivered market support and a NASDAQ 100 breakout session. PayPal (PYPL) jumped by 9.25% on a rosy earnings forecast, supporting the NASDAQ 100’s 2.59% rally.

From the SEC v Ripple case, the Ripple defense team made its latest filing as parties await the court decision on the SEC objection to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Hinman delivered the speech in 2018, over two years before the SEC filing of the lawsuit against Ripple.

This morning, defense attorney James Filan shared the Ripple defendants’ latest request, saying,

“Ripple Defendants request permission to serve non-party subpoenas to authenticate videos of seven SEC officials’ public remarks in connection with previous RFAs. SEC will not consent, and SEC seeks to reopen discovery.”

Interestingly, the SEC couldn’t confirm or deny if the video of Bill Hinman was Bill Hinman despite Hinman being a former SEC Director of the Division of Corporation Finance.

The latest move follows previous requests for the SEC to authenticate recorded statements totaling seven, among the recordings being one of William Hinman.

To date, the SEC has refused to admit or deny the authenticity of the recorded statements. SEC Chair Gary Gensler and the SEC are vying to become the crypto watchdog. Lawmakers on Capitol Hill could have an issue giving such a coveted task to an agency unable to identify its employees.

XRP Price Action

At the time of writing, XRP was down 0.19% to $0.3697.

A choppy morning saw XRP rise to a high of $0.3747 before falling to a low of $0.3678.

Technical Indicators

XRP needs to move through the $0.3700 pivot to target the First Major Resistance Level (R1) at $0.3771 and the Wednesday high of $0.3774.

XRP would need support from the broader market to break out from the morning high of $0.3747.

In the case of an extended crypto rally, XRP could test resistance at the Second Major Resistance Level (R2) at $0.3845 and resistance at $0.39.

The Third Major Resistance Level sits at $0.3990.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3626 in play.

Barring an extended sell-off, XRP should avoid the Second Major Support Level (S2) at $0.3555.

The Third Major Support Level (S3) sits at $0.3410.

A Hinman ruling in favor of Ripple, XRP should break down the resistance levels to target $0.45. Another long delay to a court ruling could test investor resilience.

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

At the time of writing, XRP sat at the 50-day EMA, currently at $0.3703.

The 50-day EMA flattened on the 100-day EMA, while the 100-day EMA widened the gap from the 200-day EMA, both XRP price positives.

A 50-day EMA widening from the 100-day EMA would support a return to $0.39.

However, a fall through the 100-day EMA, currently at $0.3634, would bring S1 and sub-$0.36 into view.