XRP Bulls Eye a Return to $0.80 on Settlement Hopes

Key Insights:

• On Tuesday, XRP bucked the broader market trend, rallying 5.57% to end the day at $0.7784.
• Talk of a settlement in the SEC v Ripple case delivered a bullish session.
• The technical indicators are bullish, supporting a return to $0.80.

On Tuesday, XRP rallied by 5.57%. Reversing a 1.40% fall from Monday, XRP ended the day at $0.7784.

XRP Price Action

This morning, XRP was up 0.55% to $0.7827. A mixed start to the day saw XRP fall to an early low of $0.7718 before rising to a high of $0.7886.

Daily Chart

The Daily Chart showed XRP/USD sitting above the lower level of the $0.7737 – $0.7870 resistance band. However, XRP also sat well above the 50-day ($0.5489) and 200-day ($0.4780) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA and reflected bullish momentum over the near term.

Despite retreating from a Thursday high of $0.9337, XRP/USD avoided sub-$0.70 and the upper level of the $0.6530 – $0.6417 support band, supporting a return to $0.80.

However, a fall to sub-$0.70 would bring the upper level of the $0.6530 – $0.6417 support band and sub-$0.65 into play.

Looking at the 14-Daily RSI, the 73.87 reading signals XRP in oversold territory. However, the EMAs signal a run at $0.80. Steering clear of sub-$0.75 will be important in the coming sessions.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.80. XRP/USD sits below the upper level of the $0.7737 – $0.7870 resistance band.

However, XRP sits above the 50-day ($0.6765) and 200-day ($0.5571) EMAs, sending bullish signals over the near and longer-term time horizons. Significantly, the 50-day EMA pulled further away from the 200-day EMA, supporting a move through the $0.7737 – $0.7870 resistance band to target $0.80.

The 14-4H RSI reading of 69.26 sends bullish XRP price signals and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum, supporting a breakout from the $0.7737 – $0.7870 resistance band to target $0.80.

Hopes of a Settlement Delivered a Breakout Session

On Monday, Judge Sarah Netburn issued a Court Order calling on the SEC and Ripple to find three mutually convenient dates to schedule a settlement conference. The order is on the basis that both parties believe it would be ‘productive at this time’.

With the threat of an appeal sending XRP back to sub-$0.70 shortly after the SEC v Ripple ruling, hopes of a settlement on the outstanding charges against Ripple would end a likely lengthy period of uncertainty for XRP and the US digital asset space.

For the SEC and SEC Chair Gary Gensler, a costly appeal and another loss at the expense of taxpayer money could spell the end for the SEC and the oversight of the digital asset space. However, a settlement could ease pressure on lawmakers to redefine the boundaries and allow the SEC to continue regulating the US crypto space.

US lawmaker scrutiny is intensifying on the Republican side of the aisle. On Tuesday, Ripple CEO Brad Garlinghouse shared a letter from Republican Ritchie Torres to SEC Chair Gensler.

Torres called the SEC v Ripple Court ruling the Torres Doctrine, saying the Court decision sets a clear rule that should bear the name of Judge Torres, who has brought long overdue legal clarity to the chaos of crypto regulation.

Torres also noted that,

“The tenuous legal foundation for the litigation against Coinbase has come crashing down, and rightfully so.”

The Day Ahead

SEC v Ripple Court ruling-related chatter will continue to draw interest, with news of both parties providing the Court with mutually agreeable dates for a settlement conference being a bullish price scenario.

However, we expect sentiment toward the broader market to influence, with Binance and Coinbase-related news also needing consideration.