the main ideas:
- On Monday, XRP was up a modest 0.37%, with late support pulling back from session losses.
- US markets were closed on Monday, leaving XRP in limbo. No court rulings and little influence on the Nasdaq have tested investors’ resilience.
- Technical indicators are still bearish. XRP is currently below the 100-day moving average, which supports a return below $0.30.
On Monday, XRP rose 0.37%. After rising 0.61% on Sunday, XRP ended the day at $0.33295.
A bearish morning saw XRP drop to a late-morning low of $0.32263. XRP fell through the first major support level (S1) at $0.3288 before bouncing back to the last hour high at $0.33341.
Against the first major resistance level (R1) at $0.3336, XRP retreated back below $0.3330.
The long weekend of Labor Day in the US means there are no injunctions from the ongoing SEC v Ripple case. With US markets also closed for a holiday, bearish sentiment from European stock markets pared in the morning session before reaching support.
Investors show resilience despite court delays in Hinman’s case
While US economic indicators and appetite for riskier assets continue to influence, the SEC v Ripple issue is the main driver.
Investors were awaiting a court ruling on an SEC challenge in late July to a court order denying the SEC’s request to protect Hinman’s speech-related documents under attorney-client privilege.
We expect the ruling to have a significant impact on the issue and XRP price action in the near term.
William Henman, a former SEC director of corporate finance, is a central figure in the SEC v Ripple case. In a famous speech in 2018, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The SEC has withheld documents related to the letter so far, despite previous court orders.
XRP Price Action
At the time of writing, XRP is down 0.08% to $0.33269.
The volatile start to the day saw XRP reach an early high at $0.34279. XRP broke through the first major resistance level (R1) at $0.3367 and the second major resistance level (R2) at $0.3404 before dropping to a low of $0.33087.
XRP needs to avoid the $0.3297 pivot to re-target the first major resistance (R1) level at $0.3367.
A return to $0.3350 will support another breakout session. However, investors are likely to take note of US economic indicators due later today and the possibility of a court ruling on the SEC challenge.
In the event of an extended crypto rally, XRP is likely to retest the second major resistance level (R2) at $0.3404 and the resistance at $0.3450. The third major resistance level (R3) is located at $0.3512.
A fall through the pivot will place the first major support level (S1) at $0.3259. Excluding the crypto market event, XRP should avoid below $0.32 and the second major support level (S2) at $0.3189.
The third major support level (S3) is located at $0.3081.
Both the exponential moving averages and the 4-hour candlestick chart (below) sent a bearish signal.
At the time of writing, XRP is below its 100-day moving average, currently at $0.33692. The 100-day moving average has fallen from the 200-day moving average, while the 50-day moving average has fallen to the 100-day moving average. XRP price signals have been mixed.
A drop for XRP across the 50-day EMA ($0.33119) should put key support levels into play. However, a move of XRP through the R1 ($0.3367) and the 100-day EMA (0.33692) would give the bulls another run at R2 ($0.3404) and the 200-day EMA ($0.34521).
XRP Price Volatility Rises as $0.34 Visits Ahead of US Stats – Coinphony [SV]