Economic Contraction

XRP falls below $0.34 on recession fears and Fed monetary policy

Below the first major resistance level at $0.3649, XRP fell to a last-hour low of $0.3351.

XRP broke through major support levels to end the day below $0.34 for the first time since July 15.

SEC v Ripple Case Updates Muted by Fed Jitters

There have been more updates from the SEC v Ripple case, which continues to drive XRP back down to $0.40.

On Monday, defense attorney James Filan share the latest Ripple deposit.

Ripple filed a letter opposing the SEC’s request “to impose an unprecedented level of secrecy on these proceedings by sealing all identifying information in the Daubert motions regarding its five proposed expert witnesses.”

The Amici Curiae legal adviser was also in action.

James Filan share deposits, saying,

“Amici files a response to the SEC’s objection to their motion to participate in the expert challenge and to the SEC’s motions to revoke their status and bar John Deaton from further proceeding.”

The latest filings are unlikely to have a significant impact on XRP, with investors awaiting the SEC’s response brief to the court denying its motion to protect documents related to William Hinman’s speech under solicitor-client privilege.

The SEC is trying to protect documents related to William Hinman’s speech from a 2018 speech.

In 2018, the former SEC Director of the Corporate Finance Division stated that Bitcoin (BTC) and Ethereum (ETH) are not securities.

As investors await the next decision from the SEC, market angst over Fed monetary policy and investor fear of a US economic recession sent XRP lower than $0.34.

This week, US consumer confidence, second quarter GDP and inflation numbers will be of great interest.

On Wednesday, however, the Fed’s monetary policy decision could turn out to be critical. While markets are expecting a 75 basis point hike, the Fed could raise rates by 50 basis points in reaction to recent economic indicators signaling a recession.

In July, the services PMI slipped from 52.7 to 47.0, according to preliminary figures, rekindling fears of an economic recession. A PMI value below 50.0 indicates a contraction in the sector. Services represent over 70% of the US economy.