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XRP Price Pressures Linger Amid Broader Crypto Market Rally

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XRP Price Pressures Linger Amid Broader Crypto Market Rally

Key ideas:

  • On Friday, XRP fell 0.13% as XRP failed to join the broader crypto market in a rally on Friday.
  • Market sentiment towards the ongoing SEC vs. Ripple case brought XRP back ahead of the weekend.
  • However, the technical indicators are bullish, with XRP hovering above the 50-day EMA, supporting a move back to $0.40.

Friday, XRP down 0.13%. After a loss of 0.31% on Thursday, XRP ended the day at $0.3798.

A mixed start to the day saw XRP hit an early high of $0.3807 before reversing. Below the first major resistance level (R1) at $0.3850, XRP slipped to a late morning low of $0.3701. XRP broke through the first major support level (S1) at $0.3763 ​​and the second major support level (S2) at $0.3724.

However, a late Friday rally saw XRP breach key support levels to end the day at $0.3798.

Following US wholesale and consumer price inflation figures, US consumer sentiment and inflation expectations provided support. According to preliminary figures, Michigan’s consumer confidence index fell from 51.5 to 55.1 in August. Looking at the subcomponents, the Michigan Inflation Expectations Indicator fell from 5.2% to 5.0%, another crypto positive.

While US economic indicators and market expectations of a less aggressive Fed were positive for XRP, the SEC vs. Ripple the case was a drag. Uncertainty ahead of court ruling on documents related to Hinman’s speech capped upside down.

XRP Shows Limited Reaction to US Stats to Track Broader Crypto Market

On Friday, XRP showed a relatively subdued response to US economic indicators. The lack of response saw XRP reverse the broader trend in the crypto market, which was bullish.

Investor uncertainty over the outcome of the SEC case against Ripple began to test buyers’ appetites at the start of the weekend. In July, the Court refuse the SEC says documents related to William Hinman’s speech are subject to attorney-client privilege. Court ruling led to another SEC attempt change the Court’s position.

Prior to the Court’s latest ruling, the SEC had deposit at least six motions attempting to protect the Hinman documents under solicitor-client privilege. Investors are now awaiting another court decision on the documents related to the speech, which tests the support.

XRP Price Action

At the time of writing, XRP was up 0.50% at $0.3817.

A bullish morning saw XRP breach the first major resistance level (R1) at $0.3835 to test the second major resistance level (R2) at $0.3872 before falling back to $0.3820.

XRPUSD 130822 Daily Chart

Technical indicators

Avoid $0.3768 pivot would give the bulls another run at the first major resistance level (R1) at $0.3835.

XRP would need support from the broader market to avoid falling back below $0.38.

In the event of an extended crypto rebound, XRP could retest the second major resistance level (R2) at $0.3872 and resistance at $0.39.

The third major resistance level is located at $0.3976.

A drop through the pivot would bring into play the first major support level at $0.3731. Barring a large-scale crypto reversal, XRP is likely to avoid below $0.37 and the second major support level (S2) at $0.3664.

The third major support level (S3) lies at $0.3560

Any court ruling on the Hinman documents would lessen the influence of the support and resistance levels.

XRPUSD 130822 Hourly Chart

The EMA and the 4 hour candlestick chart (below) has sent a bullish signal.

At the time of writing, XRP was sitting above the 50-day EMA, currently at $0.3757.

The 50-day EMA moved away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish price signals.

A continued widening of the 50-day EMA from the 100-day EMA would support a move to R1 ($0.3835) to retarget R2 ($0.3872) and $0.39.

However, a decline in the 50-day EMA ($0.3757) would bring S1 (0.3731) and the 100-day EMA, currently at $0.3711, into view.

XRPUSD 130822 4 hour chart

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