On Thursday, XRP joined the broader crypto market in the red, falling 4.57% to end the day at $0.37122. US President Joe Biden’s crypto tax plans, Fed Fear, and the collapse of Silvergate Bank overshadowed optimism toward the SEC vs. Ripple case. Technical indicators turned bearish, signaling a return to below $0.35.
On Thursday, XRP fell 4.57%. Reversing a 2.33% gain on Wednesday, XRP ended the day at $0.37122. Significantly, XRP ended a three-day winning streak.
After a hectic morning, XRP rallied to an early afternoon high of $0.39717 before pulling back. Failing to reach the first major resistance level (R1) at $0.4026, XRP slid to a Thursday night low of $0.36443. XRP fell through the first major support level (S1) at $0.3739 to close the day at $0.37122.
SEC vs. Ripple Case Goes to the Background to Leave XRP in a Bearish Mood
There were no SEC vs. Ripple case updates to distract investors from the crypto news wires and the US economic calendar.
Market angst ahead of the US jobs report, as well as Fed fears, weighed on buyers’ appetites. Following news that Silvergate Bank was planning a voluntary liquidation, shares of SVB Financial Group (SIVB) plunged, as investors responded to the announcement of a $1.75 billion share sale to support its balance sheet and to address the impact of the drop in deposits.
The US Administration added to the bearish mood, publishing a White House fact sheet outlining plans to remove crypto tax subsidies.
For investors monitoring the SEC vs. Ripple case, a court ruling on the Hinman Documents will be the key for the defendants and the crypto market in general. In a famous 2018 speech, William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
The contentious issue with the speech relates to Hinman’s connection to Simpson Thacher. Simpson Thacher is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.
A Court decision in favor of the Defendants would fuel the expectation of an SEC settlement.
XRP Action Price – Technical Indicators
XRP was down 0.19% at $0.37051. A bearish start to the day saw XRP fall from an initial high of $0.37097 to a low of $0.36534.
XRP needs to move through the $0.3776 pivot to target the first major resistance level (R1) at $0.3908, and Thursday’s high of $0.39717. A return to $0.39 would signal a bullish session. However, the broader crypto market and SEC vs. Ripple talk would need to support a breakout.
In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4103. The third main resistance level (R3) sits at $0.4431.
The 50-day EMA has pulled back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.
A move through the 50-day EMA ($0.37858) would support a break of the 100-day EMA ($0.37996) and 200-day EMA ($0.38313) to target R1 ($0.3908). However, a drop-through S1 ($0.3580) would give bears a look below $0.35.
By Audy Castaneda
