XRP price drops below $0.40 as investors await Hinman decision

Key ideas:

  • On Sunday, XRP fell 0.63%. A fourth straight day in the red left XRP up 0.89% for the week.
  • A relatively limited week saw XRP lose ground against crypto leaders as investors await an SEC decision against Ripple Court.
  • However, the technical indicators are bullish with XRP hovering above the 50-day EMA, supporting another run to $0.40.

On Sunday, XRP fell 0.63%. After a 0.47% loss on Saturday, XRP ended the week up 0.89% at $0.3756

A bullish start to the day saw XRP breach the first major resistance level (R1) at $0.3848 to hit a late morning high of $0.3920. Colliding with the second major resistance level (R2) at $0.3915, XRP slipped to a low of $0.3739.

Finding support at the first major support level (S1) at $0.3739, XRP ended the day at $0.3756.

There were no updates from the ongoing SEC v Ripple case to influence, leaving XRP in the hands of the broader crypto market. The late morning reversal was in line with a broader market pullback that left the crypto market in negative territory for the session.

The uncertainty surrounding the Fed’s monetary policy decision in September and the SEC case against Ripple remain headwinds for XRP.

Court ruling on Hinman documents could come this week

On Sunday, XRP failed to extend a bullish morning run for a second session as investors locked in profits ahead of a court ruling.

In late July, the SEC filed an objection to a July court ruling rejecting its attempt to protect documents related to William Hinman’s speech under solicitor-client privilege.

A court ruling on the SEC’s objection could come this week, leading to price volatility. Significantly, the decision is likely to dictate the direction of the case. The SEC filed its objection on July 23.

We expect investors to be cautious ahead of the Court’s decision.

XRP Price Action

At the time of writing, XRP was up 0.93% at $0.3791.

A choppy morning saw XRP fall to an early low of $0.3743 before rising to a high of $0.3794.

XRPUSD 150822 Daily Chart

Technical indicators

XRP needs to cross the $0.3805 pivot to support a run to the first major resistance level (R1) at $0.3871 and Sunday’s high of $0.3920.

A broader bullish morning session in the market would support a breakout from $0.3850.

In the event of an extended crypto rally, XRP could test the second major resistance level (R2) at $0.3986 and resistance at $0.40.

The third major resistance level is located at $0.4167.

Failure to pass through the pivot would bring into play the first major support level at $0.3690. Barring a large-scale crypto reversal, XRP is likely to avoid below $0.3650 and the second major support level (S2) at $0.3624.

The third major support level (S3) is located at $0.3443

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

XRPUSD 150822 Hourly Chart

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

At the time of writing, XRP was sitting above the 50-day EMA, currently at $0.3772.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA flattened out to the 200-day EMA, delivering bearish price signals.

After this morning’s breakout, a hold above the 50-day EMA would support a move to R1 ($0.3871) to target R2 ($0.3986) and $0.40.

However, a drop through the 50-day EMA would highlight the 100-day EMA (0.3728) and S1 (0.3690).