SEC v Ripple Ruling Goes Against the SEC, Giving XRP a Look at $0.55

Key Insights:

• On Thursday, XRP led the crypto top 100 with an 8.49% rally to end the day at $0.4870.
• An unexpected Court ruling from the SEC v Ripple case delivered an XRP price breakout.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.55.

On Thursday, XRP surged by 8.49%. Following a 0.65% gain on Wednesday, XRP ended the day at $0.48700.

Bearish through the morning session, XRP fell to an early afternoon low of $0.4259. Finding support at the First Major Support Level (S1) at $0.4258, XRP surged to a late high of $0.50938.

XRP broke through the First Major Resistance Level (R1) at $0.4636 and the Second Major Resistance Level (R2) at $0.4783 to end the day at $0.48700. Resistance at $0.500 pegged XRP back.

An unexpected Court ruling from the ongoing SEC v Ripple case delivered the breakout session.

Courts Orders the SEC to Turn Over Hinman Speech-Related Docs

On Thursday, Judge Torres overruled the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

Defense attorney James Filan shared the ruling, saying,

“BREAKING: JUDGE TORRES OVERRULES THE SEC’S OBJECTIONS AND ORDERS THE SEC TO TURN OVER THE HINMAN DOCUMENTS.”

The former SEC Director of the Division of Corporation Finance, William Hinman, has been a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Until late July, the Defendants had the SEC on the defensive, with numerous Court rulings going in favor of the Defendants. The SEC had battled to shield the Hinman documents under the attorney-client privilege, with more than seven motions contesting previous Court decisions.

The recent Motion for Summary judgment filings suggested a possible out-of-court agreement. The market consensus had been that the SEC would do whatever it could to prevent the documents from becoming public records, including a settlement. The defendants filed their Motion for Summary Judgment without a Court ruling on the Hinman docs.

Thursday’s ruling is another blow for the SEC, which is trying to win lawmaker approval to oversee the digital asset space. While XRP responded positively to the news, an appeal to the Court ruling could be on the horizon. The other alternative for the SEC would be to settle.

To date, Ripple CEO Brad Garlinghouse has played down a willingness to reach an out-of-court settlement.

XRP Price Action

At the time of writing, XRP was down 1.23% to $0.48100. A bearish start to the day saw XRP fall from an early high of $0.48766 to a low of $0.47706.

Technical Indicators

XRP needs to avoid the $0.4741 pivot to target the First Major Resistance Level (R1) at $0.5223. Investors will look out for comments from SEC and the Defendants, with any hint of an SEC appeal likely to limit the upside.

However, in the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5576. The Third Major Resistance Level (R3) sits at $0.6411.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4388 into play. Barring an extended sell-off, XRP should steer clear of sub-$0.43 and the Second Major Support Level (S2) at $0.3906.

The Third Major Support Level (S3) sits at $0.3071.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.44952. The 50-day EMA widened from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were XRP price positive.

An XRP hold above the 50-day EMA ($0.44952) would support a breakout from R1 ($0.5223) to target $0.55. However, a fall through the 50-day EMA ($0.44952) would give the bears a run at S1 ($0.4388) and the 100-day EMA ($0.42586). The 200-day EMA sits at $0.39760.