XRP Bulls to Target $0.3650 on SEC v Ripple Optimism and US Stats

Key Insights:

• On Wednesday, XRP reversed a Tuesday 1.21% loss to end the session at $0.34781.
• A broad-based crypto rally, fueled by US economic indicators and the NASDAQ Index, delivered support.
• However, the technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.33.

On Wednesday, XRP rose by 1.21%. Reversing a 1.21% loss from Tuesday, XRP ended the day at $0.34781. Significantly, XRP revisited $0.35 for a third consecutive session before easing back.

Tracking the broader crypto market, XRP fell to an early morning low of $0.34246 before making a move. Steering clear of the First Major Support Level (S1) at $0.3388, XRP rallied to a mid-morning high of $0.35191. XRP broke through the First Major Resistance Level (R1) at $0.3501 before easing back. A mixed afternoon saw XRP break back through R1 before ending the day at $0.34781.

Updates from the ongoing SEC v Ripple case drew interest but had a muted impact on XRP.

XRP Finds Support Despite Pending Court Rulings

On Wednesday, there was a flurry of activity in the SEC v Ripple case. According to the Court schedule, non-parties had to file motions to seal any summary judgment materials that differed from the redactions and sealing treatments requested by the parties.

Some non-parties filed Motions to Redact declarations in support of the SEC’s Motion of Summary Judgment. MoneyGram also filed a Motion to Seal to protect employee identities.

However, there were no Court rulings on the SEC request to redact portions of the William Hinman speech-related documents nor on the Summary Judgment Reply briefs.

As investors await the two key Court rulings, the parties are due to file oppositions to Omnibus Motions to seal on January 9 and Daubert Motions by January 13.

Regarding the SEC motion and the William Hinman speech-related documents, the SEC is attempting to shield selected content from the public. Following more than six failed attempts at preventing the documents from becoming public, the latest move could be a last-ditch effort before considering a settlement.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

While the filings drew interest, the lack of progress in the case left XRP in the hands of the broader crypto market. US economic indicators and the NASDAQ Index delivered support, while hawkish FOMC meeting minutes capped the upside.

Today, the US economic calendar and the NASDAQ Index will continue to guide XRP and the broader market. However, any Court rulings would overshadow US stats.

XRP Price Action

At the time of writing, XRP was down 1.00% to $0.34434. A mixed start to the day saw XRP rise to an early high of $0.34832 before falling to a low of $0.34410.

Technical Indicators

XRP needs to move through the $0.3474 pivot to target the First Major Resistance Level (R1) at $0.3523. A return to $0.35 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3568 and resistance at $0.36. The Third Major Resistance Level (R3) sits at $0.3663.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3429 in play. However, barring an extended sell-off, XRP should avoid sub-$0.3350. The Second Major Support Level (S2) at $0.3379 should limit the downside. The Third Major Support Level (S3) sits at $0.3285.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.34612. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.34612) would support a run at the 100-day ($0.35057) and R1 ($0.3523). However, failure to move through the 50-day EMA ($0.34612) would bring S1 ($0.3429) and sub-$0.34 into view.