Key ideas:
- On Saturday, XRP followed the broader trend of the crypto market, falling 1.50% to end the day at $0.50537.
- The SEC v Ripple talk failed to provide support, with bets rising for a Federal Reserve interest rate hike and a regulatory risk weighting.
- However, technical indicators remain bullish, indicating a return to $0.55.
On Saturday, XRP fell 1.50%. Partially reversing a 1.98% gain on Thursday, XRP ended the day at $0.50537. Despite the bearish session, XRP avoided sub-$0.50 for the first time in six sessions.
Trending down throughout the session, XRP fell from a high opening price of $0.51294 to a late afternoon low of $0.50300. However, moving away from the first major support level (S1) at $0.5018, XRP revisited the $0.5070 level before pulling back.
SEC v Ripple Chatter leaves XRP investors on the sidelines
It was another quiet day for him. SEC vs. Ripple case, with no updates to provide direction. The lack of updates left XRP in the hands of the broader crypto market.
Investors responded further to Friday's US Jobs Report, with increasing bets of a 25 basis point Fed rate hike doing the damage.
The talk between the SEC and Ripple attracted the interest of Bill Morgan, a pro-crypto lawyer, who shared his views on the case. On Friday, Bill Morgan had this for say,
"I was surprised that the SEC's own expert admitted that from the 2018 amendment onwards, bitcoin and ethereum price movement can explain up to 90% of XRP price movement."
Morgan was addressing the following statement,
โHere, the SEC's own expert concludes that, from mid-2018 onwards, bitcoin and ether returns can explain up to almost 90% of XRP returns. The SEC does not offer a serious answer and simply denies that the cases say what they say by establishing this legal rule.
As Morgan shared his views, Amicus Curiae defense attorney John Deaton was also active on Twitter. saying,
โWhen people talk about the negative impact of the SEC case against Ripple and XRP, here is an example. Tapjets and thousands of other providers accept XRP. But some major companies won't touch it because of the demand."
Deaton's comments were bearish as the ongoing case impacted further use of XRP.
the day ahead
Investors should track crypto news wires and Twitter chatter. The SEC v Ripple case talk will provide guidance. However, the silence of SEC v Ripple will leave regulatory activity in the spotlight. Binance and coin base (CURRENCY) comment will also move the dial.
XRP Price Action
At the time of writing, XRP rose 0.34% to $0.50710. A bullish start to the day saw XRP rise from an initial low of $0.50504 to a high of $0.50710.
technical indicators
XRP needs to avoid a drop through $0.5071 pivot to target the first main resistance level (R1) at $0.5112 and Saturday's high of $0.51294. A return to $0.51 would signal a bullish session. However, the SEC v Ripple talk would need to admit a breakout.
In the event of another prolonged rally, XRP would likely test the second major resistance level (R2) at $0.5170 and resistance at $0.52. The third main resistance level (R3) sits at $0.5270.
A fall through the pivot would bring the first major support level (S1) into play at $0.5013. However, barring a prolonged sell-off, XRP should avoid going below $0.4950. The second major support level (S2) at $0.4972 should cap the downside. The third major support level (S3) sits at $0.4872.
He It's not and the 4-hour candlestick chart (below) sent bullish signals.
At the time of writing, XRP was sitting above the 50-day EMA, currently at $0.50596. The 50 day EMA has turned away from the 100 day EMA, and the 100 day EMA has broken out from the 200 day EMA. The EMAs delivered bullish signals.
A hold above the 50-day EMA ($0.50596) would support a break from R1 ($0.5112) to the target of R2 ($0.5170) and $0.52. However, a drop through the 50-day EMA ($0.50596) would bring S1 ($0.5013) and less than $0.50 into view. A drop through the 50 day EMA would send a bearish signal.
