XRP Bulls to Target Return to $0.38 on SEC v Ripple Court Rulings

Key Insights:

• On Monday, XRP bucked a bearish crypto market trend, rising by 0.92% to end the day at $0.37024.
• SEC v Ripple case news delivered XRP price support, with the SEC on the wrong end of several rulings.
• However, the technical indicators remained bearish, signaling a return to sub-$0.35.

On Monday, XRP rose by 0.92%. Partially reversing a 1.79% loss from Sunday, XRP ended the day at $0.37024. Despite the bullish session, XRP revisited sub-$0.36 for the second time since January 11.

A bearish start to the day saw XRP slide to a mid-morning low of $0.35936. XRP fell through the First Major Support Level (S1) at $0.3627 before rising to a high of $0.37362. Coming within range of the First Major Resistance Level (R1) at $0.3740, XRP eased back to end the day at $0.37024.

SEC v Ripple Case Rulings Deliver XRP Price Support

It was a busy Monday session, with Court rulings from the ongoing SEC v Ripple case supporting a bullish start to the week.

Defense attorney James Filan shared the latest ruling from Judge Torres, saying,

“BREAKING: Judge Torres issues Ruling on Parties’ Motions to Preclude Expert Testimony.”

While presiding Judge Torres granted and denied motions from both sides, the Courts denied more SEC motions to exclude testimony, which should put the defendants on a better footing.

Amicus Curiae attorney John Deaton had this to say,

“Ripple’s Motion to Exclude Expert No 1 from testifying is GRANTED as to his first opinion about the perceptions of a reasonable XRP purchaser and DENIED as to the remainder of his testimony. – Judge Torres – Now try and tell me XRP Holders don’t make a difference.”

Significantly, the rulings mean that presiding Judge Torres is not waiting until the very end and could begin ruling on other pending Motions.

Rulings on the Hinman Documents could have a material impact on the case and XRP. The SEC filed a Motion to Redact certain content after failing to shield the entirety of the documents under the attorney-client privilege. A ruling against the SEC could raise speculation of a settlement.

The consensus is that the documents could affect the SEC and its case against the defendants.

Ripple CEO Brad Garlinghouse shared his views on the speech-related documents, saying,

“When those come to light, I think you will see more kind of like, how is it possible for the SEC to decide to bring a case against Ripple given what they were saying within their own walls.”

The Day Ahead

Further updates and commentary from the SEC v Ripple case should have more influence than other crypto events. However, a lack of updates would leave XRP in the hands of the crypto news wires.

Investors should continue monitoring Binance, FTX, and Silvergate Bank-related news. Regulatory activity and lawmaker chatter will likely remain the focal point.

During the afternoon session, Fed Chair Powell will also be in focus. Giving testimony to lawmakers on Capitol Hill, hawkish chatter could test buyer appetite.

For the Proof-of-Work protocols, a crypto mining hearing on Capitol Hill could drive volatility. Increasing anti-crypto sentiment on Capitol Hill could lead to an increase in calls for a ban on Proof-of-Work protocols in a bid to protect the environment.

In early 2022, CoinShare published a report on crypto mining, with statistics vastly different from the numbers US lawmakers have thrown around. There have been heated debates in previous hearings relating to crypto mining.

XRP Price Action

At the time of writing, XRP was down 0.03% to $0.37014. A mixed start to the day saw XRP fall to an early low of $0.36807 before rising to a high of $0.37081.

Technical Indicators

XRP needs to avoid the $0.3677 pivot to target the First Major Resistance Level (R1) at $0.3761. A move through the Monday high of $0.37362 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 an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3820 and resistance at $0.3850. The Third Major Resistance Level (R3) sits at $0.3963.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3619 into play. However, barring another extended broad-based crypto sell-off, XRP should avoid sub-$0.3550 and the Second Major Support Level (S2) at $0.3535. The Third Major Support Level (S3) sits at $0.3392.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.37399. The 50-day EMA fell back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

An XRP move through the 50-day EMA ($0.37399) and R1 ($0.3761) would give the bulls a run at the 100-day EMA ($0.37874) and R2 ($0.3820). An XRP move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.37399) would leave the Major Support Levels in play.