XRP Bulls to Target $0.50 on Latest SEC Filing in the SEC v Ripple Case

Key Insights:

• On Thursday, XRP rallied by 5.26% to end the day at $0.44439.
• Optimism over a Ripple victory in the SEC v Ripple case and US Treasury Secretary Janet Yellen delivered support.
• The technical indicators remain bullish, signaling a return to $0.50.

On Thursday, XRP rallied by 5.26%. Partially reversing a 9.87% tumble from Wednesday, XRP ended the day at $0.44439. XRP avoided sub-$0.41 for the first time since November 2022.

A mixed start to the day saw XRP fall to an early low of $0.41280 before making a move. Steering clear of the First Major Support Level (S1) at $0.3963, XRP rallied to a late afternoon high of $0.45550. However, falling short of the First Major Resistance Level (R1) at $0.4615, XRP eased back to end the day at $0.44439.

Hopes of a Ripple Win and the US Government Delivered Support

The ongoing SEC v Ripple case was back in the spotlight on Thursday. Defense attorney James Filan shared the SEC response to the Ripple filing on Monday, referencing the Bittner and Voyager cases, to presiding Judge Torres.

In response to the Ripple letter supporting its fair notice defense, the SEC had this to say about the Ripple filing,

“Defendants shamelessly mischaracterize the Voyager bankruptcy court’s statements and pluck choice phrases out of context in a misguided attempt to boost their unavailing fair notice defense.”

The tone and the speed of the SEC response to the Ripple letter suggest concern within the SEC camp.

The Defendants’ referenced the Voyager (VGX) bankruptcy hearing and presiding Judge Wiles’s rulings.

The Ripple letter filed to Judge Torres stated,

“Judge Wiles found that cryptocurrency market participants operate in a regulatory environment that at best can be described as highly uncertain, in which regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC or whether they are securities that are subject to securities laws, or neither, or even on what criteria should be applied in making the decision.”

Judge Wiles went on to say,

“An uncertainty has persisted despite the fact that cryptocurrency exchanges have been around for a number of years.”

Mid-week, recently appointed Ripple Labs President Monica Long shared the market optimism of a Ripple win.

US Treasury Secretary Janet Yellen contributed to the bullish Thursday session. The former Fed Chair assured investors that American bank deposits are safe and that regulators have the necessary tools to tackle a bank crisis.

The Day Ahead

Investors should monitor updates from the SEC v Ripple case. While rulings on the Hinman Documents and the Summary Judgment Reply Briefs could come at any moment, a Court response to the Ripple and SEC filings will draw plenty of interest.

However, a lack of SEC v Ripple case updates would leave regulator and lawmaker chatter to influence, with Binance and Coinbase (COIN) in the spotlight.

This afternoon, US economic indicators and Fed chatter will provide direction. US private sector PMIs and FOMC member James Bullard will draw interest as investors assess the likely effects of Fed monetary policy on the US economy.

XRP Price Action

At the time of writing, XRP was down 1.23% to $0.43894. A bearish start to the day saw XRP fall from an opening price of $0.44452 to a low of $0.43843.

Technical Indicators

XRP needs to avoid the $0.4376 pivot to target the First Major Resistance Level (R1) at $0.4623. A move through the Thursday high of $0.4555 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 another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4803 and resistance at $0.50. The Third Major Resistance Level (R3) sits at $0.5230.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4196 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.40 and the Second Major Support Level (S2) at $0.3949. The Third Major Support Level (S3) sits at $0.3522.

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.40861. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.40861) would support a breakout from R1 ($0.4623) to target R2 ($0.4803) and $0.50. However, a fall through the S1 ($0.4196) and the 50-day ($0.40861) would bring the 100-day EMA ($0.39495) and S2 ($0.3949) into play. A fall through the 50-day EMA would send a bearish signal.