XRP Remains Bearish Despite Calls for a Bill Hinman Investigation

Key Insights:

• On Monday, XRP ended a five-day losing streak, recovering from sub-$0.60 to end the day flat at $0.6235.
• SEC plans to appeal the SEC v Ripple Court ruling continued to weigh on investor sentiment.
• The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Monday, XRP ended the day flat. After a 0.78% loss on Sunday, XRP ended the day at $0.6235. XRP fell to sub-$0.60 for the first time since the SEC v Ripple Court ruling before finding late support.

XRP Price Action

This morning, XRP was down 0.82% to $0.6184. A mixed start to the day saw XRP rise to an early high of $0.6246 before falling to a low of $0.6177.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6417 – $0.6530 resistance band and the 50-day EMA ($0.6241). However, XRP remained above the 200-day EMA ($0.5171), sending bearish near-term but bullish longer-term price signals.

Notably, the 50-day EMA narrowed to the 200-day EMA, a bearish price signal.

Looking at the 14-Daily RSI, the 40.73 reading sends bearish XRP price signals, signaling a return to sub-$0.60 to bring the $0.5900 – $0.5750 support band into play. However, a move through the 50-day EMA ($0.6241) would give the bulls a run at the $0.6417 – $0.6530 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6539) and 200-day ($0.6494) EMAs, sending bearish near and longer-term price signals. The 50-day EMA narrowed on the 200-day EMA, signaling a fall toward the $0.5900 – $0.5750 support band. However, an XRP move through the $0.6417 – $0.6530 resistance band and the 200-day EMA ($0.6494) would give the bulls a run at the 50-day EMA ($0.6539).

The 36.53 14-4H RSI reading reflects the bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a fall through the $0.5900 – $0.5750 support band.

SEC v Ripple Case-Related News Continued to Flood the News Wires

It was a busy start to the week, with SEC v Ripple-related news hitting the crypto news wires.

Ripple Chief Legal Officer Stuart Alderoty targeted Bill Hinman over the infamous Hinman speech, saying,

“Crypto critic/x-SEC official John Reed Stark says there should be an investigation into Bill Hinman. This is broader than Ripple – there could potentially be serious conflicts of interest by a gov official. An investigation will either put it to rest or hold folks accountable.”

Alderoty shared an excerpt that read,

“Yes, I have read that Bill Hinman might have acted unethically or even unlawfully, at least according to some reports. The FBI should investigate the so-called Hinman emails, and if evidence shows unlawful conduct, DOJ should prosecute. But Hinman’s conduct is a weak deflection, a total red herring, and has little to do with the applicability of the securities laws.”

Judge Torres did not focus on the Hinman documents but applied the Howey Test.

The Day Ahead

SEC v Ripple case-related chatter will continue to influence, with an SEC appeal of the Judge Torres ruling likely to weigh on investor sentiment.

However, investors should continue to track SEC activity and US lawmaker chatter. ETF, Binance, and Coinbase-related news also need consideration.