XRP Bulls to Target $0.55 as Anticipation Builds of a Ripple Win

Key Insights:

• On Tuesday, XRP extended the winning streak to four sessions, rallying 7.21% to end the day at $0.51400.
• A lack of updates from the ongoing SEC v Ripple case allowed hope to continue fueling a return to $0.60.
• The technical indicators are bullish, signaling a return to $0.60.

On Tuesday, XRP rallied by 7.21%. Following a 6.95% gain on Monday, XRP ended the day at $0.51400. XRP held onto the $0.51 handle for the first time since October 2022.

A mixed start to the day saw XRP fall to an early low of $0.46542. Steering clear of the First Major Support Level (S1) at $0.4521, XRP rallied to a late high of $0.53627. XRP broke through the Major Resistance Levels. However, a late pullback saw XRP fall through the Third Major Resistance Level (R3) at $0.5612 and the Second Major Resistance Level (R2) at $0.5157 to end the day at $0.51400.

Bets of a Ripple Victory in the SEC v Ripple Case Send XRP to $0.536

It was another quiet session on Tuesday, with no updates from the ongoing SEC v Ripple case to influence investor sentiment. The lack of updates left investors favoring a Ripple victory.

Recent comments from Ripple President Monica Long and Amicus Curiae attorney John Deaton continued to resonate on Tuesday.

The latest shift in sentiment toward a Ripple victory came after Ripple filed a letter with the court referencing Court rulings from the Voyager Digital bankruptcy hearings.

The CFTC lawsuit against Binance couldn’t have come at a better time. Presiding Judge Torres can now consider the Ripple letter with greater conviction following the Commodity Futures Trading Commission’s action against Binance.

In a matter of weeks, the SEC and the CFTC have delivered conflicting views on whether ethereum (ETH) is a security or a commodity in an already disjointed US regulatory landscape. The disagreement over the classification of ETH supports a recent ruling from the presiding Judge in the Voyager Digital bankruptcy case.

In the Ripple letter to Judge Torres, Ripple wrote,

“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.”

It would be quite a coup for Ripple to win based on a fair notice defense. The latest infighting between two regulators responsible for overseeing the digital asset space should put Ripple on a firmer footing.

The Day Ahead

Updates from the SEC v Ripple case will need consideration, with rulings on the latest Court filings, the Hinman Documents, and the Summary Judgment Reply Briefs as the focal points.

However, a lack of SEC v Ripple case updates would leave regulatory activity and lawmaker chatter to influence. Binance and Coinbase (COIN) remain in the spotlight as US regulators turn the screw on the digital asset space.

XRP Price Action

At the time of writing, XRP was up 1.17% to $0.51999. A bullish start to the day saw XRP rise from an opening price of $0.51399 to an early high of $0.52331.

Technical Indicators

XRP needs to avoid the $0.5052 pivot to target the First Major Resistance Level (R1) at $0.5450. A move through the Tuesday high of $0.53628 would signal another bullish session. However, SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test resistance at $0.55 but fall short of the Second Major Resistance Level (R2) at $0.5761. The Third Major Resistance Level (R3) sits at $0.6469.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4742 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4344. The Third Major Support Level (S3) sits at $0.3635.

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 $0.45111. The 50-day EMA pulled further 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 S1 ($0.4742) and the 50-day EMA ($0.45111) would support a breakout from R1 ($0.5450) to target $0.55 and R2 ($0.5761). However, a fall through S1 ($0.4742) would bring the 50-day ($0.4511) and S2 ($0.4344) into play. A fall through the 50-day EMA would send a bearish signal.