XRP Price Action in Limbo as Another Week Goes by Without a Ruling

Key insights:

  • On Friday, XRP fell 0.70% to end the day at $ 0.33088.
  • Weaker-than-expected US labor market statistics failed to deliver a bullish session, with US Treasury Secretary Janet Yellen weighing on riskier assets.
  • Technical indicators remain bearish. With XRP below the 50-day EMA, a return below $ 0.30 remains in play.

On Friday, XRP was down 0.70%. Partially reversing a 1.79% gain from Thursday, XRP ended the day at $ 0.33088. For the current week, XRP is up 2.70%, with three out of five bullish sessions providing the upside.

A choppy morning saw XRP hit a mid-morning high of $ 0.33500. Not being below the first major resistance level (R1) at $ 0.3371, XRP slipped to the final low of $ 0.32533 before returning to the $ 0.33 level. The First Major Support Level (S1) at $ 0.3255 limited the downside at the end of the session.

XRP found brief support from weaker-than-expected US wage and nonfarm growth data before reversing.

For XRP holders, a pending court ruling on the SEC v Ripple case continues to leave XRP at less than $ 0.40.

The continuous silence leaves XRP in Janet Yellen’s hands for the day

On Friday, US Treasury Secretary and former Fed Chairman Janet Yellen sent XRP and the broader cryptocurrency market into the red.

In response to widely anticipated US wage growth and non-farm wage data on Friday, Yellen reminded the markets of the Fed’s target. The former Fed chairman reportedly said inflation remained too high and that the burden of bringing down inflation rested on the Fed.

XRP and the broader cryptocurrency market had found support from weaker-than-expected US labor market statistics prior to Yellen’s comments.

However, XRP’s upside continued to be limited, with investors still awaiting a key court decision.

Investors are currently awaiting the court’s decision on the SEC’s objection to a court ruling denying the SEC’s motion to protect Hinman’s speech documents under attorney-client privilege.

Former SEC director of the Corporation Finance Division, William Hinman, is a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman claimed that Bitcoin (BTC) and Ethereum (ETH) are not stocks.

With the SEC objection filed in late July, another week has gone by without a ruling, which could begin to nerve XRP holders.

XRP price action

At the time of writing, XRP was down 0.58% to $ 0.32896. A mixed start to the day saw XRP rise to an initial high of $ 0.33412 before sliding to a low of $ 0.32896.

XRPUSD 030922 Daily chart

Technical indicators

XRP must cross the $ 0.3304 pivot to reach the First Major Resistance Level (R1) at $ 0.3355.

XRP will need broader market support to break out of Friday’s high of $ 0.3350, with investors likely to further digest Friday’s stats and Yellen’s comments.

In the event of an extended rally in cryptocurrencies, XRP would likely test the second major resistance level (R2) at $ 0.3401. However, with the court ruling pending, R2 would likely limit the upside.

The third major resistance level (R3) is found at $ 0.3497. A court ruling in favor of Ripple would support a move to $ 0.35 to reach the $ 0.40 target.

Failure to pass through the pivot would leave the First Major Support Level (S1) in play at $ 0.3258. In the event of a large Fed fear-fueled cryptocurrency sell-off, XRP could test the Second Major Support Level (S2) at $ 0.3207 and support at $ 0.32.

The third major support level (S3) is found at $ 0.3111.

XRPUSD 030922 Hourly chart

The EMAs and the 4-hour candlestick chart (below) have sent a bearish signal.

At the time of writing, XRP was below the 50-day EMA, currently at $ 0.33272. The 100-day EMA has fallen from the 200-day EMA, with the 50-day EMA falling from the 200-day EMA. The price signals were bearish.

A further pullback of the 50-day EMA from the 200-day EMA would bring the major support levels into play. However, a move through the 50-day EMA ($ 0.33272) and R1 ($ 0.3355) would give the bulls a run to R2 ($ 0.3401) and the 100-day EMA ($ 0.34025). ). The 200-day EMA is trading at $ 0.34846.

XRPUSD 030922 4-hour chart

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