Investor Hope for a Favorable Court Ruling Delivers XRP Price Support

Key Insights:

• On Monday, XRP slipped by 0.13% to extend the losing streak to five sessions.
• A court ruling in favor of Ripple provided modest support before XRP succumbed to a flight to safety in response to economic indicators from China.
• However, the technical indicators are bullish, with XRP sitting at the 50-day EMA, signaling a possible breakout and a return to $0.40.

On Monday, XRP slipped by 0.13%. Following a 0.63% decline on Sunday, XRP ended the day at $0.3751.

A bullish start to the day saw XRP rise to an early high of $0.3848. Falling short of the First Major Resistance Level (R1) at $0.3871, XRP slid to a late morning low of $0.3660.

XRP fell through the First Major Support Level (S1) at $0.3690 before an afternoon rebound to wrap up the day at $0.3751.

Updates from the ongoing SEC v Ripple case provided little support, with economic indicators from China delivering another bearish session.

Momentum with Ripple ahead of the Hinman Docs Court Ruling

Ripple got another win in the ongoing case against the SEC. On Monday, Judge Netburn ruled in favor of Ripple’s motion to serve non-party subpoenas to authenticate seven videos of SEC officials’ public remarks.

To date, the SEC has not confirmed or denied if the video of Bill Hinman was Bill Hinman despite Hinman being a former SEC Director. Bill Hinman’s remarks are among the seven videos in question.

Affirmation that one of the seven is Bill Hinman may give the Ripple defense team another way to target Hinman and his 2018 speech, now a focal point in the case. In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

While the ruling was a win for Ripple, the XRP price impact was modest, as investors await a more material ruling.

In late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege. The SEC filed its objection on July 23, which means a decision to come at any time.

XRP Price Action

At the time of writing, XRP was up 0.35% to $0.3764.

Technical Indicators

XRP needs to avoid the $0.3754 pivot to support a run at the First Major Resistance Level (R1) at $0.3846 and the Monday high of $0.3848.

A bullish broader market morning session would support a return to $0.38.

In the case of an extended crypto rally, XRP could test the Second Major Resistance Level (R2) at $0.3941 and resistance at $0.40.

The Third Major Resistance Level sits at $0.4129.

A fall through the pivot would bring the First Major Support Level at $0.3658 into play. Barring a broad-based crypto reversal, XRP should avoid sub-$0.3650 and the Second Major Support Level (S2) at $0.3565.

The Third Major Support Level (S3) sits at $0.3377

Any court decision on the Hinman docs would mute the influence of the support and resistance levels.

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

At the time of writing, XRP sat at the 50-day EMA, currently at $0.3765.

The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA, delivering mixed price signals.

However, a breakout from the 50-day EMA would support a move through R1 ($0.3846) to target R2 ($0.3941) and $0.40.

A fall through the 50-day EMA and the 100-day EMA (0.3728) would bring the 200-day EMA (0.3662) and S1 (0.3658) into view. Expect XRP to come under intense selling pressure in the event of a fall through the 200-day EMA.