XRP Faces Downward Pressure Ahead of Fed Rate Decision

XRP is experiencing increased downside risks, having fallen 9% from its recent high of $2.34. Currently trading around $2.13, XRP’s bearish trend reflects a lack of conviction among cryptocurrency traders. Bitcoin (BTC) is also struggling to maintain support above $105,000.

Market sentiment remains relatively calm as attention shifts from geopolitical tensions in the Middle East to the Federal Reserve’s upcoming interest rate decision. Experts anticipate that the Federal Open Market Committee (FOMC) will hold rates steady in the 4.25% to 4.50% range.

Ripple Files Supplementary Letter Supporting Motion for Indicative Ruling

Ripple has submitted a supplementary letter in support of its joint motion with the U.S. Securities and Exchange Commission (SEC) for an indicative ruling. Defense lawyers clarified that neither Ripple nor the SEC is asking Judge Analisa Torres of the Southern District of New York to review the “Summary Judgment Order.”

Ripple stated that the indicative ruling would not exempt it from any obligations under securities laws. The letter emphasized that the joint motion is primarily related to penalty reduction, considering the potential risk of appeal.

The SEC, in its joint motion, stated it is “re-evaluating its fundamental approach to digital asset regulation,” leading the regulator to drop cases against several crypto entities, including Binance and Coinbase.

Ripple has urged the court to acknowledge the mutually agreed-upon $50 million settlement, aligning with the SEC’s commitment to providing a “clear rule of the road” for the cryptocurrency sector.

“Without disturbing the Court’s substantive decision—and while still holding Ripple accountable—the settlement would also place Ripple in a position more comparable to other industry participants whose cases were dismissed much earlier in their cycle as a matter of SEC discretion,” Ripple stated in the letter.

Judge Torres had ordered Ripple to pay a $125 million civil penalty in the Summary Judgment, significantly less than the $2 billion initially sought by the SEC. However, Ripple and the SEC mutually agreed to a $50 million settlement in early May, leading to the joint motion for an indicative ruling.

Technical Outlook: XRP Bearish Before Fed Rate Decision

Depending on the sentiment following the Fed’s interest rate decisions, a sharp rebound towards the resistance highlighted in red on the 4-hour chart could occur, or the decline could accelerate to test support at $2.00.

A potential bullish reversal is anticipated if the $2.00 support holds, validating a bullish fractal pattern. A fractal refers to a series of consecutive bars on a chart that are repetitive, indicating a possible price reversal.

XRP’s price has formed a repetitive pattern since late May, with bars touching support near $2.00 and resistance around $2.34, suggesting a potential reversal above the $2.00 level. Such a move could propel the price upward, targeting highs above the $2.34 resistance and the XRP peak of $2.65 reached in May.

Still, the prevailing position below the 50-period Exponential Moving Average (EMA) on the 4-hour chart at $2.19, the 100-period EMA at $2.21, and the 200-period EMA at $2.23 largely disadvantages the bulls. The downward slope of the Relative Strength Index (RSI) towards the oversold region indicates bearish momentum. Therefore, vigilance is needed regarding the $2.00 support and the April low at $1.62.

• XRP falls, targeting the $2.00 support level ahead of the Fed’s interest rate decision.
• Ripple has filed a supplementary letter supporting a joint motion with the U.S. SEC for an indicative ruling.
• XRP could trigger a bullish fractal breakout if support around $2.00 holds.

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