On Saturday, XRP joined the broader crypto market in the red, falling 1.01% to end the day at $0.37354. Investor angst over intensifying scrutiny of the crypto market overshadowed the latest in the SEC vs. Ripple case. Technical indicators remained bearish, indicating a return to below $0.35.
On Saturday, XRP fell 1.01%. Following a 0.02% trend-bucking gain on Friday, XRP ended the day at $0.37354. Significantly, XRP ended the session below $0.38 for the third day in a row.
A mixed start to the day saw XRP rally to an early high of $0.37993 before pulling back. Failing to reach the first major resistance level (R1) at $0.3879, XRP fell to a late low of $0.36843. However, pulling away from the first major support level (S1) at $0.3594, XRP found late support to end the day at $0.37354.
William Hinman remains a central figure in the SEC vs. Ripple case. Former SEC Division of Corporate Finance head William Hinman has said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Since the famous 2018 speech, SEC Chairman Gary Gensler has gone a step further by stating that all cryptocurrencies except BTC are unregistered securities.
Silvergate Bank and Regulatory and Lawmaker Scrutiny Hits Appetite
Despite the more hopeful sentiment towards the SEC vs. Ripple case, Silvergate Bank’s updates left buyers on the sidelines. The latest in the Silvergate Bank saga comes amid increasing scrutiny from lawmakers and regulators.
Significantly, the impact of the crypto winter on a Main Street bank could incentivize lawmakers and regulators to escalate the battle against the digital asset space.
This week, news of UK banks restricting credit card purchases of cryptocurrency added to investor jitters. There have been increasing reports of lawmakers pushing financial institutions to limit retail consumer access to the crypto market.
XRP Price Action – Technical Indicators
XRP needs to move through the $0.3740 pivot to target the First Major Resistance Level (R1) at $0.3795 and the Saturday high of $0.37993. A return to $0.38 would signal a bullish session. However, the broader crypto market and SEC vs. Ripple chatter would need to support a breakout.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3855 and resistance at $0.39. The Third Major Resistance Level (R3) sits at $0.3970.
At the time of writing, XRP sat below the 50-day EMA, currently at $0.37744. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.
A move of XRP through the 50-day EMA ($0.37744) would support a break of R1 ($0.3795) and the 100-day EMA ($0.38153) to target the 200-day EMA ($0.38510) and R2 ($0.3855). A move of XRP through the 50 day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.37744) would leave major support levels in play.
By Audy Castaneda
