XRP Bulls To Retarget $0.80 as Calls for Regulatory Reform Grow

Key Insights:

• On Sunday, XRP found much-needed support, gaining 4.68% to end the day at $0.7478.
• Hopes of action on Capitol Hill in response to the Court Ruling delivered support.
• The nearer-term technical indicators are bullish, supporting another run at $0.80.

On Sunday, XRP rallied by 4.68%. Reversing a 0.58% loss from Saturday, XRP ended the week up 59.7% to $0.7478. Significantly, XRP retested resistance at $0.80 before ending the day at sub-$0.75.

XRP Price Action

At the time of writing, XRP was down 0.41% to $0.7447. A mixed start to the day saw XRP rise to an early high of $0.7480 before falling to a low of $0.7419.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.7737 – $0.7870 resistance band. However, XRP sat well above the 50-day ($0.5299) and 200-day ($0.4720) 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 the upper level of the $0.6530 – $0.6417 support band, supporting another run at $0.80.

However, a return 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 72.19 reading signals XRP in oversold territory. However, the EMAs signal a run at $0.80.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.75. XRP/USD also sits below the $0.7737 – $0.7870 resistance band.

However, XRP sits above the 50-day ($0.6292) and 200-day ($0.5322) EMAs, sending bullish signals over the near and longer-term time horizons. Significantly, the 50-day EMA pulled away from the 200-day EMA, supporting a move through $0.75 to target the $0.7737 – $0.7870 resistance band and $0.80.

The 14-4H RSI reading of 62.23 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 $0.75 to target the $0.7737 – $0.7870 resistance band and $0.80.

SEC v Ripple Ruling Draws the Attention of US Lawmakers

Over the weekend, Senator Cynthia Lummis called on Congress to recognize the SEC v Ripple rulings, provide a regulatory framework for the industry, and protect consumers.

Senator Lummis issued the following statement in response to the SEC v Ripple Court ruling,

“I applaud the decision of the Southern District of New York finding that crypto assets traded in secondary markets may not be investment contracts. This is the position that section 501 of the Lummis-Gillibrand Responsible Financial Innovation Act has taken from the beginning. The decision confirms the need for Congress to deliver a clear regulatory structure for the crypto asset industry that provides the highest level of consumer protection. We need to pass Lummis-Gillibrand to uphold the Howey test as interpreted by the Southern District of New York.”

Appeal Talk

While Senator Lummis called on Congress to act, former SEC attorney John Reed Stark had a less favorable view of the Court ruling. Stark had this to say about the Programmatic Sales ruling,

“The transformation from a token to becoming ‘not a security’ occurs because the retail trader is presumed not to understand what they’re buying and, as is the case with any securities exchange, not to know specifically who the seller is. This argument seems contrary to sacrosanct and basic investor protection principles.”

Stark added,

“Whether or not an investor reads, or is unable to read, materials relating to their purchase should not ever determine the level of protection that an investor receives. And under any circumstance, it seems logical to presume that an investor (institutional or retail) who buys XRP, is betting on Ripple for one reason or another.”

Stark believes the ruling sits on shaky ground, with an appeal and a reversal likely.

However, progress on Capitol Hill to address the regulatory void that continues to impact the US digital asset space could mute the outcome of an SEC appeal of the Court ruling.

While the outcome of an appeal would impact XRP, Ripple CEO Brad Garlinghouse expects an SEC appeal to take years, giving crypto advocates on Capitol Hill the time to push through legislation to deliver a much-needed crypto regulatory framework.

The Day Ahead

SEC v Ripple Court ruling-related chatter will continue to be the focal point, with investors awaiting further comment from the SEC.

However, we expect sentiment toward the broader market to influence, with Binance and Coinbase battling the SEC in the Courts.