SEC v Ripple: XRP on the Move Following Latest SEC Submissions

Key Insights:

• The choppy week continued into Friday, with XRP looking to recoup a 9% loss from Thursday.
• While a pickup in risk appetite delivered support this morning, the outcome of the SEC v Ripple case remains the key.
• Technical indicators remain bearish, with XRP sitting below the 50-day EMA.

On Thursday, XRP slid by 8.94%. Reversing a 6.81% gain from Wednesday, XRP ended the day at $0.3126.

A mixed start to the day saw XRP strike a morning high of $0.3470 before sliding to a low of $0.3070.

Recession fears gripped the global financial markets on Thursday, leaving sentiment towards the SEC v Ripple case on the back burner.

The bearish session saw XRP fall through the First Major Support Level at $0.3128, which pegged XRP back late in the day.

With the markets moving on from the Fed monetary policy decision, focus returns to the SEC v Ripple case.

Investors are awaiting a court ruling on SEC claims that all Hinman’s speech-related documents are under client-attorney privilege.

Late this week, the SEC made further submissions in relation to the Hinman documents.

SEC Submits Categorization of Hinman Documents for Court Consideration

Overnight, defense attorney James Filan shared the latest SEC filings in regard to William Hinman’s speech-related documents.

Turning to Twitter, Filan said,

“The SEC has submitted to the Court for in-camera review three categories of documents related to its motion asserting that the attorney-client privilege protects internal documents related to Hinman’s speech.”

There are 64 speech-related documents for the Court to consider, with the submission in response to a June 14 court order.

By way of background, in 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

On Tuesday, June 7, the SEC and Ripple attended a court-scheduled conference. Judge Sarah Netburn scheduled the meeting to focus on the SEC’s claims that all documents relating to William Hinman’s 2018 speech should fall under the attorney-client privilege.

Before last week’s conference, the SEC filed at least six motions attempting to shield the Hinman speech-related documents under the attorney-client privilege.

XRP Price Action

At the time of writing, XRP was up 8.38% to $0.3388.

A bullish morning saw XRP rally to a morning high of $0.3381 before easing back.

The First Major Resistance Level at $0.3377 pegged XRP this morning.

XRP Technical Indicators

Avoiding a fall through the First Major Resistance Level at $0.3377 and the $0.3222 pivot would bring the Second Major Resistance Level at $0.3622 into play. XRP would need the broader crypto market support to breakout from Thursday’s high of $0.3470.

In the case of an extended crypto rally, XRP could test resistance at $0.3700. The Third Major Resistance Level sits at $0.4022.

A fall through the pivot would bring the First Major Support Level at $0.2974 into play. Barring an extended sell-off throughout the afternoon, XRP should avoid sub-$0.29. The Second Major Support Level sits at $0.2821.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.3414. Today, the 50-day EMA flattened on the 100-day EMA. The 100-day EMA eased back from the 200-day EMA, XRP price negative.

A return to $0.35 levels would support a run at the 100-day EMA, currently at $0.3646. A break through the 100-day EMA would give the bulls a look at $0.37.