XRP Bulls to Target $0.40 on Sentiment Toward the SEC v Ripple Case

Key Insights:

• On Thursday, XRP trailed the top ten, rising by 0.57% to end the day at $0.37502.
• US economic indicators and FTX news updates delivered support, though a lack of SEC v Ripple news capped the upside.
• The technical indicators are bullish, with XRP sitting above the 200-day EMA, signaling a return to $0.40.

On Thursday, XRP rose by 0.57%. Following a 6.33% rally on Wednesday, XRP ended the day at $0.37502. Significantly, XRP ended the day at $0.37 for the second time since December 15 and extended the winning streak to five sessions.

A bullish start to the day saw XRP rise to an early high of $0.38108 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.3848, XRP slid to an early afternoon low of $0.3600. However, steering clear of the First Major Support Level (S1) at $0.3545, XRP recovered to end the day at $0.37502.

Investor Sentiment Toward the SEC v Ripple Case Remains Bullish

There were no updates from the ongoing SEC v Ripple case to provide direction as investors await two pivotal Court rulings.

The William Hinman speech-related documents remain the center of attention. A ruling against the SEC to redact selected sections of the speech-related documents could force the SEC into 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.

The second ruling is on the Summary Judgment Reply briefs. However, no there are no dates for the Court decisions.

Today, the parties must file the Daubert Motions, and all parties and non-parties must file oppositions to the non-party Motions to seal on January 18. While the filings will draw interest, the Hinman speech-related redactions and the Summary Judgment Reply brief remain the focal point.

Barring Court rulings, US economic indicators and the NASDAQ Index will continue to influence. US consumer sentiment figures will draw interest later today along with FOMC member commentary.

XRP Price Action

At the time of writing, XRP was down 0.94% to $0.37150. A mixed start to the day saw XRP rise to an early high of $0.37542 before falling to a low of $0.37116.

Technical Indicators

XRP needs to move through the $0.3720 pivot to target the First Major Resistance Level (R1) at $0.3841. A move through the Thursday high of $0.38108 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3931 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4142.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3630 in play. However, barring an extended sell-off, XRP should avoid sub-$0.3550 and the Second Major Support Level (S2) at $0.3510. The Third Major Support Level (S3) sits at $0.3299.

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 bullish signal.

At the time of writing, XRP sat above the 200-day EMA, currently at $0.35820. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

Avoiding S1 ($0.3630) and the 200-day EMA ($0.35820) would support a breakout from R1 ($0.3841) to give the bulls a run at R2 ($0.3931) and $0.40. However, a fall through S1 ($0.3630) and the 200-day EMA ($0.35820) would bring the 50-day ($0.35569) into view. A fall through the 50-day EMA would be a bearish signal.