XRP Bears Eye Sub-$0.70 as Appeal Chatter Does the Rounds

Key Insights:

• On Saturday, XRP saw red for a second consecutive day, falling 0.58% to end the day at $0.7144.
• Concerns over the ODL and institutional investor ruling and the threat of an SEC appeal weighed.
• The nearer-term technical indicators remained bullish, bringing $0.75 back into view.

On Saturday, XRP fell by 0.58%. Following an 11.97% slide on Friday, XRP ended the day at $0.7144. Significantly, XRP revisited sub-$0.70 before steadying. Despite two consecutive days in the red, XRP was up 53.26% Monday through Sunday morning.

XRP Price Action

At the time of writing, XRP was up 0.42% to $0.7174. A mixed start to the day saw XRP fall to an early low of $0.7120 before rising to a high of $0.7208.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.7737 – $0.7870 resistance band. However, XRP sat well above the 50-day ($0.5199) and 200-day ($0.4690) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA and reflected bullish momentum over the near term.

Despite falling back from a Thursday high of $0.9337, XRP/USD avoided the upper level of the $0.6530 – $0.6417 support band, supporting a return to $0.75.

However, a fall through the upper level of the $0.6530 – $0.6417 support band could see XRP return to sub-$0.60.

Looking at the 14-Daily RSI, the 70.83 reading signals XRP in overbought territory. However, the EMAs signal a run at $0.75.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.7200. XRP/USD also sits below the $0.7737 – $0.7870 resistance band.

However, XRP sits above the 50-day ($0.5978) and 200-day ($0.5191) EMAs, sending bullish signals over the near and longer-term time horizons. Significantly, the 50-day EMA pulled away from the 200-day EMA, supporting a move through $0.75 to target the $0.7737 – $0.7870 resistance band.

The 14-4H RSI reading of 63.33 sends bullish price signals and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum, supporting a breakout from $0.75 to target the $0.7737 – $0.7870 resistance band.

SEC v Ripple Ruling Leaves the SEC in ‘an Appeal or to not Appeal’ Quadrium

There were no SEC v Ripple Court ruling-related updates to move the dial on Saturday. However, there was plenty of chatter, with the SEC focusing on Court rulings in its favor, while Ripple highlighted the one that mattered for the US digital asset space.

XRP remained on the back foot on Saturday, with the threat of the SEC appealing the Programmatic Sales ruling testing buyer appetite. Investors were also likely to be wary of penalties vis-à-vis the institutional investor and ODL rulings.

The Day Ahead

SEC v Ripple Court ruling-related chatter will remain the focal point, with Ripple and the SEC to battle in the Courts over institutional sales.

Suggestions of a favorable settlement would support another breakout, though there is also the threat of an appeal. Before the Court ruling, investors had hoped for an SEC v Ripple settlement and an end to the debate on whether XRP is a security.

However, the SEC quashed any hopes by releasing the infamous Hinman speech-related docs that did not have the impact many had hoped for.