XRP Bulls to Target $0.55 as SEC v Ripple Optimism Lingers

Key Insights:

• On Sunday, XRP bucked the broader market trend, rising by 1.76% to end the day at $0.51871.
• Dip buyers returned after the Saturday pullback. Hopes of a Ripple win in the SEC v Ripple case delivered support.
• The technical indicators remain bullish, signaling a return to $0.60.

On Sunday, XRP rose by 1.76%. Partially reversing a 5.25% slide from Saturday, XRP ended the week up 15.71% to $0.51871. XRP extended the winning streak to four weeks.

A bearish start to the day saw XRP slide to an early morning low of $0.50201. Steering clear of the First Major Support Level (S1) at $0.4925, XRP rallied to a late afternoon high of $0.52911. However, coming up short of the First Major Resistance Level (R1) at $0.5323, XRP eased back to end the day at $0.51871.

Dip Buyers Returned on Investor Hopes of a Ripple Win in the SEC v Ripple Case

It was a quiet Sunday session. There were no SEC v Ripple case updates to influence investor sentiment.

However, an XRP return to $0.50 drew in buyers. Hopes of a Ripple victory in the SEC v Ripple case supported a return to $0.52. The lack of updates left Ripple Chief Legal Office Stuart Alderoty to share his views on the SEC and Gary Gensler.

Responding further to SEC Chair Gary Gensler’s classification of all cryptos, except BTC, as securities, Alderoty had this to say,

“Suddenly, now saying that you haven’t prejudged every crypto (with the possible exception of BTC) as a security after being called out for publicly prejudging every crypto as a security doesn’t unring the bell. Words have consequences, even for unelected senior bureaucrats.”

The SEC Chair could face tough questions on April 18, where Gensler will deliver testimony before a digital asset subcommittee on Capitol Hill.

While the SEC Chair deems ethereum (ETH) and litecoin (LTC) securities, the Commodity Futures Trading Commission considers them commodities. Two US regulatory bodies cannot agree on crypto classifications, which should make for a compelling hearing.

A Ripple victory could pressure lawmakers to reconsider the SEC’s powers to oversee the crypto space.

The Day Ahead

Investors should monitor the crypto news wires and Twitter for updates from the SEC v Ripple case. However, a lack of updates will leave the spotlight on

Binance and Coinbase (COIN). US regulatory activity and lawmaker chatter will also move the dial.

XRP Price Action

At the time of writing, XRP was up 0.90% to $0.52338. A mixed start to the day saw XRP fall to an early low of $0.51652 before rising to a high of $0.52338.

Technical Indicators

XRP needs to avoid the $0.5166 pivot to target the First Major Resistance Level (R1) at $0.5312. A move through the Sunday high of $0.52911 would signal a bullish session. However, 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 $0.5437 and resistance at $0.55. The Third Major Resistance Level (R3) sits at $0.5708.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5041 into play. However, barring an extended sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4895. The Third Major Support Level (S3) sits at $0.4624.

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 $0.50380. 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 ($0.5041) and the 50-day EMA ($0.50380) would support a breakout from R1 ($0.5312) to target R2 ($0.5437) and $0.55. However, a fall through S1 ($0.5041) and the 50-day EMA ($0.50380) would give the bears a run at S2 ($0.4895). A fall through the 50-day EMA would send a bearish signal.