XRP Faces Pressure as the SEC Targets the Hinman Documents

Key Insights:

• On Thursday, XRP rose by 1.34% to end the day at $0.3493.
• SEC v Ripple updates and US economic indicators delivered a choppy Thursday session.
• The technical indicators remain bearish, with XRP sitting below the 50-day EMA, supporting a near-term decline to $0.30.

On Thursday, XRP rose by 1.34%. Reversing a 1.12% loss from Wednesday, XRP ended the day at $0.34930. XRP ended the day at sub-$0.35 for the fifth consecutive day.

After a choppy morning, XRP fell to a late afternoon low of $0.34137. Steering clear of the First Major Support Level (S1) at $0.3379, XRP rallied to a late high of $0.35000. Coming up against the First Major Resistance Level (R1) at $0.3508, XRP eased back to end the day at $0.34930.

Crypto News Fails to Distract Investors from the US Economic Calendar

It was a busy Thursday session, with investors tracking updates from the ongoing SEC v Ripple case.

As per the Court calendar, the SEC and the Defendants filed Motions to Seal certain documents in connection with the Motions for Summary Judgment.

The Defendants sought to seal non-public documents, including internal financial reports, forecasts, and audited financial statements.

However, the SEC sought to seal across three categories of information, including,

1) names and identifying information of the SEC’s experts and XRP investor declarants,

2) personal and financial information, and

3) internal SEC documents reflecting debate and deliberation by SEC officials.

The category (3) request will be the most contentious. Before the filing, the SEC had made at least six attempts to shield the William Hinman speech-related documents under the attorney-client privilege. On each occasion, the Court ruled against the SEC motions, culminating in the Court ordering the SEC to hand the documents to the Defendants.

Another ruling against the SEC could force the SEC to seek a settlement.

In 2018, the former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

For XRP, rulings on the filings and the Summary Judgment Reply briefs will be the key. With activity picking up, uncertainty toward the outcome of the SEC v Ripple case will likely peg XRP back from a sustainable breakout.

While the SEC v Ripple case remains the key driver, US economic indicators will draw interest today. US inflation and personal spending figures will likely move the dial.

On Tuesday, XRP responded to better-than-expected US stats that supported a more hawkish Fed interest rate trajectory.

XRP Price Action

At the time of writing, XRP was down 0.58% to $0.34729. A bearish start to the day saw XRP fall from an early high of $0.34911 to a low of $0.34708.

Technical Indicators

XRP needs to avoid the $0.3469 pivot to target the First Major Resistance Level (R1) at $0.3524. A move through the Thursday high of $0.3500 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3555 and $0.36 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3642.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3438 into play. However, barring an extended sell-off, XRP should avoid sub-$0.3350. The Second Major Support Level (S2) at $0.3383 should limit the downside.

The Third Major Support Level (S3) sits at $0.3296.

Without updates from the SEC v Ripple case, XRP will likely sit in the hands of the broader crypto market and the crypto news wires.

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 $0.35354. The 50-day EMA eased back from the 100-day EMA, with the 100-day EMA falling back from the 200-day EMA. The signals were bearish.

A move through R1 ($0.35242) and the 50-day EMA ($0.35354) would bring R2 ($0.3555) and $0.36 into play. However, failure to move through the 50-day EMA ($0.35354) would leave XRP at risk of a fall to sub-$0.30.