XRP price action turns bearish on FTX crash, with less than $0.35 on the horizon

the main ideas:

  • On Tuesday, XRP was down 12.74%. For the fourth consecutive day, the left red XRP is below $0.41.
  • SEC v Ripple updates took a backseat, with XRP responding to FTX’s demise and SEC winning its case against LBRY.
  • Technical indicators are bearish, with XRP holding below the 200-day moving average, indicating a return to below $0.35.

On Tuesday, XRP was down 12.74%. After losing 1.15% on Monday, XRP ended the day at $0.40637. Notably, XRP fell below $0.35 for the first time since September 19.

Bearish throughout the session, XRP fell from an early high of $0.43422 to a late low of $0.33501. The extended selling saw XRP drop through key support levels today. However, XRP found late support to return to $0.41 before pulling back.

There have been no updates from the SEC v Ripple issue for investors to consider. However, the news that the Securities and Exchange Commission had won its case against LBRY and the demise of FTX caused XRP and the broader market to plummet.

Woes of FTX and SEC Victory at LBRY Fall Send XRP South

On Monday, news broke that the Securities and Exchange Commission had won its case against LBRY. Defense attorney James Phelan subscriber The SEC says,

“New Hampshire Court Finds LBRY Offered LBC As Collateral and Fair Notice Defense Failed.”

file addedAnd the

The court found that “no reasonable person could reject the SEC’s claim that LBRY offered LBC as security, LBRY had no executable defense because it lacked fair notice, and the SEC was entitled to make a judgment. The SEC’s request was granted.” Finance and stock exchanges to issue a summary judgment.

While the news did not frighten investors, the news that FTX was facing a liquidity crunch caused XRP to crash below $0.40. The FTX token (FTT) dropped to its lowest level since April 2020 before a partial recovery to end the day down 75.6%.

Fear of contagion has spread throughout the cryptocurrency market. The news that Binance had agreed to acquire FTX provided some relief but failed to bring order back to the market. Adding to investor anxiety is fear of the regulatory response, as investors attribute the demise of FTX to Binance’s plans to offload its holdings from FTT.

This morning, market conditions remain uncertain, with XRP lagging the broader cryptocurrency market into negative territory.

The trend today is based on updates from Binance, FTX, and other cryptocurrency exchanges. While reports of cryptocurrency exchanges with weak or no FTX exposure will be positive, news of platforms halting withdrawals will hit the market for a second session.

Investors will also need to keep an eye on the SEC’s rhetoric after the SEC’s victory, noting the SEC v Ripple case likely to have an impact.

XRP price action

At the time of writing, XRP is down 4.92% to $0.38637. A mixed start to the day saw XRP climb to an early high at $0.41045 before dropping to a low of $0.38000.

XRPUSD 091122 Daily Chart

Technical Indicators

XRP needs to break above the $0.4027 pivot to target the first major resistance level (R1) at $0.4703. A return to $0.41 indicates a change in sentiment.

In the event of an extended rally, the bulls will rally at $0.50 but they are likely to end up below the second major resistance level (R2) at $0.5342. The third major resistance level (R3) is located at $0.6658.

Failure to move through the pivot leaves the first major support level (S1) at $0.3387. However, barring another extended sell off, XRP should avoid below $0.30 and the second major support level (S2) at $0.2711. The third major support level (S3) is located at $0.1395.

XRPUSD 091122 hourly chart

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 50-day moving average, currently at $0.46074. The 50-day exponential moving average crossed over the 200-day moving average, with the 100-day moving average converging to the 200-day moving average. The signals were bearish.

A return to $0.45 would support a move across the exponential moving averages to bring R1 ($0.4703) into play. However, if one does not break above the 50-day EMA ($0.46074), then S1 ($0.3387) is visible.

XRPUSD 091122 4-H Chart

XRP Price Action Turns Downward on FTX Collapse, With Below $0.35 Offered – Coinphony [SV]

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