SEC v Ripple: XRP Makes a Move Ahead of Key Court Ruling

Key Insights:

• XRP succumbed to crypto market forces, falling by 2.31% on Sunday.
• With investors focused on the pending court ruling on William Hinman’s speech-related documents, the downside was modest.
• Technical indicators are bullish, with XRP sitting above the 100-day EMA.

On Sunday, XRP fell by 2.31%. Reversing a 0.11% gain from Saturday, XRP ended the week up 10.1% to $0.3588.

A bullish morning saw XRP surge to a day high of $0.3746 before hitting reverse.

Coming within range of the First Major Resistance Level at $0.3759, XRP slid to a late low of $0.3575.

Despite the reversal, XRP steered clear of the First Major Resistance Level at $0.3563.

Crypto market forces weighed on XRP as investors await a court ruling on the SEC v Ripple case.

Court Ruling on Hinman Speech-Related Documents Pivotal to XRP

Since June 16, the SEC, Ripple, and investors have awaited a court ruling that could decide the outcome of the SEC v Ripple case.

Following a June 7 court-scheduled conference and court-requested submissions from the SEC, the fate of William Hinman’s speech-related documents sits with Judge Sarah Netburn.

For those new to the market, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Since a Ripple motion to compel filing on August 10, 2021, the SEC has filed at least six motions in opposition, placing Hinman at the center of the case.

The SEC is attempting to shield the Hinman speech-related documents under the attorney-client privilege.

While the market appears to be betting on a settlement, the ruling could go either way.

Ripple may find hope, however, that SEC Chair Gary Gensler is pushing to win favor with lawmakers to regulate the crypto space. A loss would almost certainly hand the responsibilities over to the more favored Commodities Futures Exchange Commission (CFTC).

With Gensler looking for a partnership with the CFTC, rather than outright responsibility, a settlement would ensure some regulatory authority over the digital asset space.

For Gensler, while the best outcome is a win, it may be too big a gamble.

XRP Price Action

At the time of writing, XRP was up 1.98% to $0.3659.

A bullish start to the day saw XRP rise from an early low of $0.3585 to a high of $0.3666.

Technical Indicators

Avoiding a fall through the $0.3636 pivot would bring the First Major Resistance Level at $0.3698 and the Sunday high of $0.3746 into play.

XRP would need the broader crypto market to support a breakout from the morning high of $0.3666.

In the case of an extended crypto rally, XRP could test resistance at $0.38 and the Second Major Resistance Level at $0.3807. The Third Major Resistance Level sits at $0.3978.

A fall through the pivot would bring the First Major Support Level at $0.3527 into play. Barring an extended sell-off, XRP should avoid sub-$0.35. The Second Major Support Level sits at $0.3465.

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, XRP sat above the 100-day EMA, currently at $0.3489. Today, the 50-day EMA converged on the 100-day EMA. The 100-day EMA narrowed to the 200-day EMA, XRP price Positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from the 200-day EMA to bring $0.40 into play.