- On Saturday, XRP joined the broader crypto market in the red, with a 1.33% decline.
- The SEC v Ripple updates took a backseat as investors responded to US economic indicators that eased fears of a US economic recession.
- The technical indicators remain bullish, with XRP sitting above the 50-day EMA.
On Saturday, XRP fell by 1.33%. Reversing a 1.43% gain from Friday, XRP ended the day at $0.3714.
A bullish start to the day saw XRP rise to a high of $0.3780 before hitting reverse. Coming up against the First Major Resistance Level (R1) at $0.3806, XRP slid to a low of $0.3705.
Steering clear of the First Major Support Level (S1) at $0.3696, XRP ended the day at $0.3714.
The crypto news wires were relatively quiet on Saturday, leaving investors to digest the US economic indicators from the week. Another sharp increase in nonfarm payrolls supports a sizeable September rate hike that could test support for riskier assets. XRP tracked the broader market into the red, with no updates from the SEC v Ripple case to influence.
A Hectic Week Could be on the Horizon after the Quiet Weekend
Over the weekend, there were no updates from the SEC v Ripple case to provide direction. Investors await several rulings that include,
- The SEC objection to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.
- A decision on a Ripple request for permission to serve non-party subpoenas to authenticate videos of seven SEC officials’ public remarks
The former SEC Director of the Division of Corporation Finance, William Hinman, sits at the center of both rulings. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
While the outcome of the SEC v Ripple case remains the key, investor sentiment towards the US economy and Fed monetary policy will continue to influence. Friday’s nonfarm payroll figures could incentivize the Fed to hike rates by as much as one percentage point.
On Wednesday, US consumer price inflation numbers will give the markets a better idea of what to expect, though another round of stats will be out before the September decision.
XRP Price Action
At the time of writing, XRP was up 0.11% to $0.3718.
A choppy start to the day saw XRP fall to an early low of $0.3683 before rising to a high of $0.3725.
XRP tested the First Major Support Level (S1) at $0.3686.
XRP needs to move through the $0.3733 pivot to target the First Major Resistance Level (R1) at $0.3761 and the Saturday high of $0.3780.
XRP would need support from the broader market to break out from $0.3750.
In the case of an extended crypto rally throughout the session, XRP could test resistance at the Second Major Resistance Level (R2) at $0.3808 and resistance at $0.3850.
The Third Major Resistance Level sits at $0.3883.
Failure to move through the pivot would give the bears a look at the First Major Support Level (S1) at $0.3686.
Barring an extended sell-off, XRP should avoid sub-$0.3658. The Second Major Support Level (S2) at $0.3658 should limit the downside.
The Third Major Support Level (S3) sits at $0.3583.
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat at the 50-day EMA, currently at $0.3718.
The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening the gap from the 200-day EMA, both XRP price positives.
A 50-day EMA widening from the 100-day EMA would support a return to $0.38.
However, a fall through the 50-day EMA ($0.3718) would bring S1 ($0.3686) into view. In case of an extended sell-off, XRP could test support at the 100-day EMA, currently at $0.3658, and S2 ($0.3658).