XRP Bulls to Target $0.39 on the Latest SEC v Ripple Case Filing

Key Insights:

• On Saturday, XRP joined the broader crypto market in the red, falling by 1.01% to end the day at $0.37354.
• Investor angst over intensifying crypto market scrutiny overshadowed the latest from the SEC v Ripple case.
• The technical indicators remained bearish, signaling a return to sub-$0.35.

On Saturday, XRP fell by 1.01%. Following a trend-bucking 0.02% gain on Friday, XRP ended the day at $0.37354. Significantly, XRP ended the session at sub-$0.38 for the third consecutive day.

A mixed start to the day saw XRP rise to an early high of $0.37993 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3879, XRP fell to a late low of $0.36843. However, steering clear of the First Major Support Level (S1) at $0.3594, XRP found late support to end the day at $0.37354.

Investor Interest in the SEC v Ripple Case to Hit New Levels

It was a quiet Saturday session, with no updates from the ongoing SEC v Ripple case to distract investors from the crypto news wires.

On Saturday, we reported the latest Ripple Court filing that gave investors hope of a favorable outcome to the case. The Defendants filed a letter to the Court citing the Supreme Court decision in Bittner v United States.

Outlining the comments of presiding Justice Gorsuch, the filing gave reason for why the opinion strongly supports the Defendants’ fair notice.

Notably, the Ripple defense team added,

“As in Bittner, the relevant statutory provisions provide no discussion specific to the fact of this case. As in Bittner, the government’s prior guidance appears to contradict its present litigation position.”

The latest filing and the Hinman Documents give Ripple a two-pronged attack, tilting the scales in favor of the Defendants. With the increased US regulatory and lawmaker scrutiny, investor interest in the case is rising. A Ripple victory would ease SEC pressure on the broader crypto market and could force US lawmakers to change tact.

William Hinman remains a central figure in the SEC v Ripple case. Former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Since the famous 2018 speech, SEC Chair Gary Gensler has taken things one step further, stating that all cryptos, except BTC, are unregistered securities.

Ripple defense counsel Stuart Alderoty had this to say about the latest sweeping statement,

“Chair Gensler has again proclaimed that every cryptocurrency, except BTC, is an unregistered security. He now must recuse himself from voting on any enforcement case that raises that issue since he has prejudged the outcome. Antoniu v. SEC (8th Cir. 1989).”

Silvergate Bank and Regulatory and Lawmaker Scrutiny Hits Appetite

Despite the more hopeful sentiment toward the SEC v Ripple case, Silvergate Bank updates left dip buyers on the sidelines. The latest from the Silvergate Bank saga comes amidst intensifying lawmaker and regulatory scrutiny.

Significantly, the impact of the crypto winter on a Main Street bank could incentivize lawmakers and regulators to step up the battle against the digital asset space.

This week, news of UK banks restricting crypto purchases by credit card added to the investor jitters. There have been increasing reports of lawmakers pressuring financial institutions to limit retail consumer access to the crypto market.

The Day Ahead

Further updates and commentary from the SEC v Ripple case would likely have a more material influence than other crypto events. However, a lack of updates would leave XRP in the hands of the crypto news wires.

Investors should continue monitoring Binance, FTX, and Silvergate Bank-related news, with SEC activity and US lawmaker chatter likely to remain the focal point.

XRP Price Action

At the time of writing, XRP was up 0.06% to $0.37375. A mixed start to the day saw XRP fall to an early low of $0.37286 before rising to a high of $0.37452.

Technical Indicators

XRP needs to move through the $0.3740 pivot to target the First Major Resistance Level (R1) at $0.3795 and the Saturday high of $0.37993. A return to $0.38 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3855 and resistance at $0.39. The Third Major Resistance Level (R3) sits at $0.3970.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3680 in play. However, barring another extended broad-based crypto sell-off, XRP should avoid sub-$0.36. The Second Major Support Level (S2) at $0.3625 should limit the downside. The Third Major Support Level (S3) sits at $0.3510.

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 $0.37744. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

An XRP move through the 50-day EMA ($0.37744) would support a breakout from R1 ($0.3795) and the 100-day EMA ($0.38153) to target the 200-day EMA ($0.38510) and R2 ($0.3855). An XRP move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.37744) would leave the Major Support Levels in play.