Ripple

XRP Bulls to Test $0.3550 as SEC v Ripple Uncertainty Takes Hold

Key Insights:

  • On Tuesday, XRP trailed the crypto top ten, rising by 0.46% to end the day at $0.35071.
  • While the broader crypto market delivered support, updates from the SEC v Ripple case prevented a breakout session.
  • The technical indicators are more bullish, with XRP sitting above the 100-day EMA, signaling a return to $0.3650.

On Tuesday, XRP rose by 0.46%. Following a 1.34% gain on Monday, XRP ended the day at $0.35071. Significantly, XRP ended the day at $0.35 for the first time since December 28.

A mixed start to the day saw XRP fall to an early low of $0.34289. However, steering clear of the First Major Support Level (S1) at $0.3412, XRP rallied to a late high of $0.35416. Coming up short of the First Major Resistance Level (R1) at $0.3572, XRP eased back to end the day at $0.35071.

Investors Cautious After Latest Court Filings Limit XRP Gains

While XRP wrapped up the session at $0.35, the upside on the day modest was relative to its top ten peers. This week, investors have returned their attention to the ongoing SEC v Ripple case. On Monday, the parties filed oppositions to Omnibus Motions to seal. The arguments from both sides were compelling, leaving investors cautious ahead of several pending Court rulings.

Notably, the Defendants continued to focus on the William Hinman speech-related documents, which remain the Achilles Heel of the SEC. The William Hinman speech-related documents sit at the core of the case, with the SEC making at least seven attempts to shield the speech-related documents from the public arena.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Two dates remain in the Court schedule. On January 13, the parties must file the Daubert Motions, and all parties and non-parties must file oppositions to the non-party Motions to seal previously due on January 4.

While the filings will draw interest, investor apprehension could hit XRP, with rulings on the Hinman speech-related redactions and the Summary Judgment Reply briefs still pending. A ruling against the SEC on protecting content within the Hinman speech-related documents could corner the SEC into a settlement.

Today, while the broader crypto market will provide direction, investors should monitor SEC v Ripple case updates, which could materially affect the outcome. There are no US economic indicators to distract investors.

XRP Price Action

At the time of writing, XRP was down 0.63% to $0.34850. A mixed start to the day saw XRP rise to an early high of $0.35159 before falling to a low of $0.34830.

XRPUSD 110123 Daily Chart

Technical Indicators

XRP needs to move through the $0.3493 pivot to target the First Major Resistance Level (R1) at $0.3556. A return to $0.3550 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3605. The Third Major Resistance Level (R3) sits at $0.3718.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3443 in play. However, barring an extended sell-off, XRP should avoid sub-$0.34 and the Second Major Support Level (S2) at $0.3380. The Third Major Support Level (S3) sits at $0.3267.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

XRPUSD 110123 Hourly Chart

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.34797. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A move through R1 ($0.3556) and the 200-day EMA ($0.35661) would give the bulls a run at R2 ($0.3605). However, a fall through the 100-day EMA ($0.34797) would bring the 50-day ($0.34626) and S1 ($0.3443) into view. A fall through the 50-day EMA would be a bearish signal.

XRPUSD 110123 4 Hourly Chart

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