Key Insights:
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XRP fell by 1.14% on Tuesday. Following a 3.17% decline on Monday, XRP returned to sub-$0.31 before finding support.
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Investor jitters over US inflation weighed on riskier assets, while investors digested a pivotal court ruling in the SEC v Ripple case.
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Technical indicators are bearish, with XRP sitting below the 50-day EMA.
On Tuesday, XRP fell by 1.14%. Following a 3.17% decline on Monday, XRP ended the day at $0.3112. The downside came despite a pivotal court ruling in the SEC v Ripple case.
A mixed start to the day saw XRP rise to an early high of $0.3177 before hitting reverse.
Falling short of the First Major Resistance Level at $0.3254, XRP slid to a low of $0.3073.
Finding support at the First Major Support Level at $0.3075, XRP returned to $0.31 levels to limit the damage.
XRP and the broader crypto market continued to track the NASDAQ 100 ahead of US inflation figures due later today.
US Inflation Figures Jitters Overshadow Hinman Court Ruling
Investor angst over US inflation and Fed monetary policy continued to weigh on XRP and the broader crypto market.
Another spike in US inflation could force the Fed into a more aggressive move this month and in the months ahead to bring inflation towards the target.
Fears are that a more aggressive interest rate path trajectory will adversely impact the US economy.
However, while Fed monetary policy continues to provide direction, the ongoing SEC v Ripple case remains a consideration.
Overnight, defense attorney James Filan shared the court ruling on the SEC motion to protect the William Hinman speech-related documents under the client-attorney privilege. The ruling was a win for Ripple.
Filan shared the court ruling, saying,
“Magistrate judge Netburn denies the SEC’s attorney-client privilege claims. The predominant purpose of the communications was not to provide legal advice. The documents must be produced.”
Filan added,
“That decision is what Black’s Law Dictionary defines as a body slam.”
In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
The XRP reaction to the news was muted, with investors now likely to be eying the SEC’s next move, which could be an appeal against the decision.
XRP Price Action
At the time of writing, XRP was up 0.35% to $0.3123.
A choppy start to the day saw XRP fall to an early low of $0.3067 before rising to a high of $0.3124.
XRP tested the First Major Support Level at $0.3064 early on.
Technical Indicators
An XRP move through the $0.3121 pivot would test the First Major Resistance Level (R1) at $0.3169 and resistance at the Tuesday high of $0.3177.