XRP Investors Await an SEC v Ripple Court Decision on the Hinman Docs

Key Insights:

• On Tuesday, XRP rose by 1.74% to mark a fourth bullish session from five.
• XRP found support from the broader market as investors await updates from the SEC v Ripple case.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a fall to sub-$0.45.

On Tuesday, XRP rose by 1.74%. Partially reversing a 3.32% slide from Monday, XRP ended the day at $0.46134. Notably, XRP rose for the fourth time in five sessions.

A bearish start to the day saw XRP fall to an early low of $0.44351. Finding support at the First Major Support Level (S1) at $0.4432, XRP rallied to a late afternoon high of $0.47259. XRP broke through the First Major Resistance Level (R1) at $0.4684 before falling back to sub-$0.4650.

Bullish sentiment from the broader crypto market provided XRP price support on Tuesday. However, the Tuesday gain was modest relative to its top-ten peers. Investor sentiment towards the SEC v Ripple case remained cautious, limiting the upside.

Investor Jitters Remain a Test for XRP as SEC v Ripple Case Progresses

There were no updates from the SEC v Ripple case to provide direction on Tuesday. The lack of news left investors on a cautious footing. As the parties progress, the bigger question is whether the SEC and Ripple will settle or battle it out in Court.

Recent Amicus brief filings have given the Court a view from a different lens vis-à-vis the uses of XRP. Companies, including I-Remit, TapJets, and SpendDBits, filed Amicus briefs demonstrating how XRP fails to satisfy the third prong of the Howey Test.

One other area of focus remains the Hinman speech-related documents. The Court is due to respond to the SEC request for ‘in camera review proposed redactions to two drafts of Director Bill Hinman’s June 2018 speech that discuss pending determinations before the Commission.”

The outcome of the Court decision could influence whether the SEC and Ripple will settle or go to trial.

William Hinman remains a central figure in the SEC v Ripple case despite the SEC’s best efforts. In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was down 0.44% to $0.45931. A mixed start to the day saw XRP rise to an early high of $0.46262 before falling to a low of $0.45697.

Technical Indicators

XRP needs to avoid the $0.4591 pivot to take a run at the First Major Resistance Level (R1) at $0.47484. Updates from the SEC v Ripple case and broader crypto market sentiment will continue to provide direction ahead of US economic indicators later in the day.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4882 and $0.50. The Third Major Resistance Level (R3) sits at $0.5173.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4457 into play. However, barring an extended sell-off, XRP should avoid sub-$0.44 and the Second Major Support Level (S2) at $0.4301. The Third Major Support Level (S3) sits at $0.4010.

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 $0.46153. The 50-day EMA narrowed on the 100-day EMA, with the 100-day EMA closing the gap on the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.46153) and the 100-day EMA ($0.46649) would give the bulls a run at R1 ($0.4748). However, a fall through the 200-day EMA ($0.45754) would leave XRP under pressure.