In This Article:
Key Insights:
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XRP slid by 5.7% on Sunday, with a bearish sentiment from across the broader market weighing.
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Market uncertainty over Fed monetary policy likely weighed as investors shifted focus to US inflation figures due on Wednesday.
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Technical indicators are bearish, with XRP sitting below the 50-day EMA.
On Sunday, XRP slid by 5.66%. Reversing a 1.44% gain from Saturday, XRP ended the week up 1.28% to $0.3251.
Bearish from the start of the day, XRP slid from a high of $0.3448 to a mid-afternoon low of $0.3162.
The extended sell-off saw XRP slide through the Major Support Levels. Despite a late partial recovery, XRP failed to break back through the Third Major Support Level at $0.3271.
Market Angst Over Fed Policy and Inflation Weighed
Following a bullish Saturday session, investor attention returned to economic indicators and Fed monetary policy.
On Friday, US nonfarm payrolls impressed, creating uncertainty over whether the Fed would deliver a 75-basis point rate hike next week.
Last Wednesday, the FOMC meeting minutes revealed talk of a 50-basis rate hike over concerns over the impact of rate hikes on the economy.
However, upbeat labor market numbers and another spike in US inflation could force the FED to deliver another 75 basis point hike, which would be crypto market negative.
For the Fed, the inflation and US retail sales figures will likely influence the next policy move.
While broader crypto market forces influence, the ongoing SEC v Ripple case remains the key driver.
Investors continue to await the all-important court ruling on SEC motions to protect William Hinman’s speech-related documents under the attorney-client privilege.
In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
The ruling could decide the outcome of the SEC case against Ripple and materially impact XRP price action.
XRP Price Action
At the time of writing, XRP was up 0.80% to $0.3277.
A mixed start to the day saw XRP fall to an early low of $0.3228 before striking a high of $0.3286.
XRP left the Major Support and Resistance Levels untested early on.
Technical Indicators
An XRP move through the $0.3287 pivot would test the First Major Resistance Level (R1) at $0.3412 and resistance at the Sunday high of $0.3448.
XRP would need the support of the broader market to support a return to $0.34.
In the case of an extended crypto rally, XRP could target the Second Major Resistance Level (R2) at $0.3573.
The Third Major Resistance Level (R3) sits at $0.3859.
Failure to move through the pivot would bring the First Major Support Level (S1) at $0.3126 into play. Barring an extended sell-off, XRP should avoid sub-$0.30. The Second Major Support Level (S2) at $0.3001 should limit the downside.