Key Insights:
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XRP rose by 1.87% on Sunday. Despite a bullish weekend, XRP ended the week down 10.5%.
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Crypto market forces continued to pressure XRP and the broader market, with no news updates on the SEC v Ripple case to shift the mood.
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Technical indicators are bearish, with XRP sitting below the 50-day EMA.
On Sunday, XRP rose by 1.87%. Following a 0.64% gain on Saturday, XRP ended the week down by 10.5% to $0.3210.
A bearish start to the day saw XRP slide through the First Major Support Level at $0.3103 to a low of $0.3082.
Steering clear of the Second Major Support Level at $0.3055, XRP rallied to a late high of $0.3253.
XRP broke through the First Major Resistance Level at $0.3187 and the Second Major Resistance Level at $0.3223.
The Second Major Resistance Level supported a late hold onto $0.32 levels.
Following last week’s pullback, XRP struggled through the morning, bucking the broader market trend.
A lack of news updates on the SEC v Ripple case pegged XRP back, however, with investors awaiting a key court ruling.
No Court Rulings Leaves XRP in the Hands of Market Risk Sentiment
With the US on holiday, the crypto market is not anticipating a court ruling on the SEC motion to protect William Hinman’s speech-related documents under the client-attorney privilege.
Since June 16, the Ripple Community, XRP holders, and the broader crypto market have awaited the court ruling.
In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
The SEC has filed more than six motions to shield Hinman’s speech-related documents, leading to speculation that the content would materially impact the SEC case.
A ruling in favor of Ripple Labs could lead to a settlement and leave the SEC at risk of losing out to the CFTC on regulating the digital asset space.
Currently, the Lummis and Gillibrand bill is making its way through Capitol Hill, forcing SEC Chair Gary Gensler to reach out to the CFTC to work together on regulating the market.
However, lawmakers and crypto industry leaders have leaned in favor of the CFTC to support innovation and regulate the space. The court ruling could, therefore, decide which regulatory authority wins the battle to oversee the crypto market.
XRP Price Action
At the time of writing, XRP was up 1.06% to $0.3244.
A choppy morning saw XRP fall to a low of $0.3142 before striking a high of $0.3268.
Technical Indicators
Avoiding the $0.3182 pivot would bring the First Major Resistance Level at $0.3281 into play.
XRP would need the support of the broader market to breakout from the current-day high of $0.3268.
In the case of an extended crypto rally, XRP could test the Second Major Resistance Level at $0.3353 and resistance at $0.34. The Third Major Resistance Level sits at $0.3524.
A fall through the pivot would bring the First Major Support Level at $0.3110 into play. Barring an extended sell-off, XRP should avoid sub-$0.3050 and the Second Major Support Level at $0.3011. The Third Major Support Level sits at $0.2840.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal.
At the time of writing, XRP sat below the 50-day EMA, currently at $0.3257. Today, the 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA, price negative.
A move through the 50-day EMA would support a run at R1 and the 100-day EMA, currently at $0.3341.
However, another pullback from the 50-day EMA would bring sub-$0.32 support levels into play.
This article was originally posted on FX Empire
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