Despite the rebound to $0.35, XRP failed to correct through the third major support level (S3) at $0.3548.
Stock market liquidity and fear of a recession take investors by surprise
After reversing Thursday in response to economic indicators from China and the US, US statistics on Friday added to bearish sentiment on the economic outlook.
The US private sector PMI figures showed a more pronounced economic slowdown at the end of the fourth quarter. The numbers came after the Federal Reserve raised hawkish interest rates and disappointing retail sales figures.
Ahead of the US PMI figures released on Friday, the news that auditing firm Mazars Global has suspended cryptocurrency-related services shook investor confidence.
There have been no substantial updates from the ongoing SEC v Ripple case to distract investors from the US economic calendar and cryptocurrency news.
Investors await the court’s ruling on summary judgment as they look forward to December 22, the next court date. On December 22, the parties must submit sweeping motions to close all articles relating to the summary judgment proposals and proposed revisions to these articles.
With investors wary of mounting legislative and regulatory scrutiny ahead of the court’s decision, XRP is likely to struggle to recoup Friday’s losses. Fear of another liquidity crisis will be a factor throughout the session.