XRP Eyes a Return to $0.40 as Empower Oversight and Ripple Battle the SEC

Key Insights:

• On Thursday, XRP rose by 0.38%, reversing a 0.40% loss from the previous session.
• SEC v Ripple updates drew interest but failed to deliver a breakout session, as Empower Oversight and Ripple tackle the SEC’s unwillingness to disclose.
• The technical indicators remain bullish, with XRP currently sitting at the 50-day EMA.

On Thursday, XRP rose by 0.38%. Reversing a 0.40% loss from Wednesday, XRP ended the day at $0.3711.

A bullish start to the day saw XRP rally to an early high of $0.3747 before hitting reverse. Falling short of the First Major Resistance Level (R1) at $0.3771, XRP slid to a low of $0.3643.

Steering clear of the First Major Support Level (S1) at $0.3626, XRP bounced back to end the day in positive territory.

US economic indicators failed to weigh, as investors look ahead to today’s US nonfarm payrolls. While investor sentiment towards the US economy and Fed monetary policy continues to influence, news updates from the SEC v Ripple case remain the key driver.

SEC Plays Same Card with Empower Oversight in Conflicts of Interest Case

From the SEC v Ripple case, there were no updates to draw interest, as investors await several court rulings. These include,

• The SEC objection to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.
• A decision on a Ripple request for permission to serve non-party subpoenas to authenticate videos of seven SEC officials’ public remarks

The former SEC Director of the Division of Corporation Finance William Hinman sits at the center of both rulings. In a now famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

With the SEC v Ripple case set to go into the third year of litigation, Empower Oversight is also facing an uncooperative US regulator established to serve the best interest of the general public.

Overnight, Empower Oversight shared its latest filing against the SEC, an amended complaint regarding,

“The SEC’s bad faith attempts to delay and avoid complying with Empower Oversight’s Freedom Acto of Information (FOIA) requests regarding conflicts of interest by top SEC officials surrounding cryptocurrency enforcement actions.”

Empower Oversight is facing similar problems to the Ripple defense, where the SEC refuses to confirm or deny the authenticity of the recorded statements of seven SEC officials, one of whom is William Hinman.

By way of background, Empower Oversight is a non-profit government watchdog. In late 2021, Empower Oversight filed a lawsuit against the SEC alleging that former SEC officials were biased against Ripple Lab and XRP.

Once more, William Hinman is at the center of proceedings. Empower Oversight claims that William Hinman received millions of dollars from his former employer while helping guide the SEC’s regulation of cryptocurrencies.

His former employer, Simpson Thacher, is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simson Thacher.

XRP Price Action

At the time of writing, XRP was up 0.75% to $0.3739.

A choppy morning saw XRP fall to an early low of $0.3700 before rising to a high of $0.3742.

Technical Indicators

XRP needs to avoid the $0.3700 pivot to target the First Major Resistance Level (R1) at $0.3758.

XRP would need support from the broader market to break out from the morning high of $0.3742.

In the case of an extended crypto rally throughout the session, XRP could test resistance at the Second Major Resistance Level (R2) at $0.3804 and resistance at $0.3850.

The Third Major Resistance Level sits at $0.3908.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3654 into play.

Barring an extended sell-off, XRP should avoid sub-$0.36 and the Second Major Support Level (S2) at $0.3596.

The Third Major Support Level (S3) sits at $0.3492.

A Hinman ruling in favor of Ripple, XRP should break down the resistance levels to target $0.45. Another long delay to a court ruling could test investor resilience.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.3702.

The 50-day EMA remained flat on the 100-day EMA, while the 100-day EMA widened the gap from the 200-day EMA, both XRP price positives.

A 50-day EMA widening from the 100-day EMA would support a return to $0.38.

However, a fall through the 50-day EMA ($0.3702) would bring S1 ($0.3654) and the 100-day EMA, currently at $0.3638, into play.