XRP Price Moves in the Hands of US Service PMIs and the SEC v Ripple Case

Key Insights:

  • On Tuesday, XRP slid to sub-$0.37 before finding support to end the day with a 2.16% loss.
  • Geopolitics and US recessionary fears overshadowed the recent updates from the SEC v Ripple case.
  • However, the technical indicators are bullish, with XRP sitting above the 50-day EMA.

On Tuesday, XRP fell by 2.16%. Following a 0.03% gain from Monday, XRP ended the day at $0.3712.

A bullish start to the day saw XRP rally to an early high of $0.3938.

Breaking through the First Major Resistance Level (R1) at $0.3864, XRP came up against the Second Major Resistance Level (R2) at $0.3934 before hitting reverse.

The reversal saw XRP slide through the First Major Support Level (S1) at $0.3718 to a low of $0.3667.

Through the late afternoon, XRP briefly revisited $0.3789 before sliding back into the red. S1 limited the downside late in the session.

The bearish sentiment from the broader crypto market weighed, with rising tensions between the US and China weighing on riskier assets.

US Economic Indicators and Nancy Pelosi Send XRP into the Red

On Tuesday, JOLTs job openings disappointed to further pressure appetite for riskier assets. Comments from Beijing on the speaker of the House Nancy Pelosi’s Taiwan visit also weighed on riskier assets.

There were no news updates from the SEC v Ripple case to influence, leaving XRP in the hands of market risk sentiment.

Investors are awaiting a court ruling on an SEC objection to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Hinman delivered the speech in 2018, over two years before the SEC filing of the lawsuit against Ripple.

Later today, US economic indicators will be back in focus, with the ISM Non-Manufacturing PMI to indicate the state of the US economy going into the third quarter.

Weak numbers will likely test support for the NASDAQ and the crypto market. For XRP, a Hinman court ruling in favor of Ripple could see XRP decouple from the US equity markets.

XRP Price Action

At the time of writing, XRP was up 0.46% to $0.3729.

A bearish start to the day saw XRP fall to an early low of $0.3629 before making a move.

Steering clear of the First Major Support Level (S1) at $0.3607, XRP rose to an early high of $0.3735.

XRPUSD 030822 Daily Chart

Technical Indicators

XRP needs to move through the $0.3772 pivot to target the First Major Resistance Level (R1) at $0.3878.

XRP would need support from the broader market to break out from the morning high of $0.3735.

In the case of an extended crypto rally throughout the session, XRP could test resistance at the Sunday high of $0.3938 and the Second Major Resistance Level (R2) at $0.4043.

The Third Major Resistance Level sits at $0.4314.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3607 in play.

Barring an extended sell-off, XRP should avoid sub-$0.36. The Second Major Support Level (S2) at $0.3607 should limit the downside.

The Third Major Support Level (S3) sits at $0.3230.

A Hinman ruling in favor of Ripple, XRP should break down the resistance levels to target $0.50.

XRPUSD 030822 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.3701.

The 50-day EMA pulled away from the 100-day EMA. Following the 100-day EMA bullish cross through the 200-day EMA, the 100-day EMA widened the gap from the 200-day EMA, both price positives.

A further widening of the 50-day EMA from the 100-day EMA would support a return to $0.40.

However, a fall through the 50-day would likely test the 100-day EMA, currently at $0.3621 and S1.

XRPUSD 030822 4-Hourly Chart

This news is republished from another source. You can check the original article here

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