XRP Bulls to Target $0.65 on SEC Early Appeal Prospects

Key Insights:

• On Thursday, XRP joined the broader market in the red, falling 1.56% to end the day at $0.6329.
• US consumer price inflation and SEC Court filings to begin the appeal process weighed.
• The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Thursday, XRP fell by 1.56%. Reversing a 0.14% gain from Wednesday, XRP ended the day at $0.6329. XRP saw red for the first time in four sessions.

XRP Price Action

This morning, XRP was up 0.28% to $0.6347. A mixed start to the day saw XRP fall to an early low of $0.6319 before rising to a high of $0.6358.

Daily Chart

The Daily Chart showed XRP/USD sitting below the lower level of the $0.6417 – $0.6530 resistance band. However, XRP held above the 50-day ($0.6263) and 200-day ($0.5209) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA, a bullish price signal.

However, looking at the 14-Daily RSI, the 44.75 reading sends bearish XRP price signals, signaling a fall through the 50-day EMA ($0.6263) to bring the $0.5900 – $0.5750 support band into play. However, a hold above the 50-day EMA ($0.6263) would support a breakout from the $0.6417 – $0.6530 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6452) and 200-day ($0.6474) EMAs, sending bearish near and longer-term price signals. The 50-day EMA pulled back from the 200-day EMA signaling a fall to sub-$0.60 to give the bears a look at the $0.5900 – $0.5750 support band. However, an XRP move through the 0.6417 – $0.6530 resistance band and the EMAs would give the bulls a run at $0.70.

The 48.62 14-4H RSI reading reflects moderately bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI signals a return to sub-$0.60 to bring the $0.5900 – $0.5750 support band into view.

US Inflation and the SEC Leave XRP on the Back Foot

It was a busy Thursday session. Investors responded to the latest SEC v Ripple case-related news.

On Wednesday, the SEC filed a letter outlining its basis for filing a Motion for Leave to File an Interlocutory Appeal regarding ‘Programmatic’ offers and sales to XRP buyers over trading platforms and Ripple’s Other Distributions.

Defense attorney James Filan shared the news, adding,

“The SEC seeking a stay of all proceedings pending appeal is not unexpected.”

Significantly, the SEC is asking for the Court not to enforce the Judgment on Programmatic Sales until after an appeal.

Ripple Chief Legal Officer Stuart Alderoty reacted to the filing on Thursday, saying,

“The SEC does not have the right to appeal just yet, which is why they are asking permission to file an interlocutory appeal. Ripple will file its response with the Court next week. Stay tuned.”

Amicus Curiae attorney John E Deaton elaborated further on the filing, saying,

“Everyone needs to understand what this is and isn’t! This is ONLY A PRE-MOTION LETTER. It’s asking the Judge permission to file a formal motion asking her to allow the SEC to then ask the 2^nd Circuit Court of Appeals to accept an early appeal.”

Deaton added,

“I expect Judge Torres to grant this motion. This will then allow her to even more fully explain her reasoning and to also further make it appeal-proof. It will also allow her an opportunity to address anything Rakoff said.”

Judge Rakoff, the presiding Judge in the SEC v Terraform Labs case, caused a stir earlier this month.

Judge Rakoff said that Judge Torres made a mistake in the SEC v Ripple Court ruling when declaring that XRP was not a security when sold on exchanges. Rakoff believed that there is no difference between stocks and institutional sales in terms of being a security.

Late in the Thursday session, the US CPI Report led to a second pullback, with sticky core inflation dragging riskier assets into the red.

The US annual inflation rate accelerated from 3.0% to 3.2%, while the core inflation rate softened from 4.8% to 4.7%. Significantly, the numbers were softer than expected. Economists forecast an annual and a core inflation rate of 3.3% and 4.9%, respectively.

The Day Ahead

SEC v Ripple case-related chatter will remain the focal point, with SEC plans to appeal the Judge Torres ruling now the focal point. Investors need Ripple to respond to the SEC filing, wait for a Judge Torres ruling, and the follow up filings from both sides.

However, investors should continue to track SEC activity and US lawmaker chatter. ETF, Binance, and Coinbase-related news will move the dial.

US producer price index numbers will also need consideration after the XRP response to the US CPI Report.