XRP Near-Term Target Remains $0.90 Despite Appeal Threat

Key Insights:

• On Thursday, XRP joined the broader market in the red, falling 3.13% to end the day at $0.7945.
• SEC-related chatter left investors in a profit-taking mood.
• However, the technical indicators remain bullish, supporting a return to $0.90.

On Thursday, XRP fell by 3.13%. Partially reversing a 5.37% rally from Wednesday, XRP ended the day at $0.7945. XRP saw red for the first time in three sessions.

XRP Price Action

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.8400 – $0.8600 resistance band. However, XRP sat well above the 50-day ($0.5689) and 200-day ($0.4846) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled further away from the 200-day EMA and reflected bullish momentum over the near term.

Despite the bearish Thursday session, XRP/USD avoided the $0.7870 – $0.7737 support band. However, a fall through the $0.7870 – $0.7737 support band would bring sub-$0.75 into play.

Looking at the 14-Daily RSI, the 70.82 reading signals XRP in overbought territory. However, the EMAs signal a run at $0.90. Steering clear of the $0.7870 – $0.7737 support band will be important in the coming sessions.

4-Hourly Chart

Looking at the 4-Hourly Chart, the XRP/USD faces strong resistance at $0.80. XRP/USD sits above the $0.7870 – $0.7737 support band.

However, XRP also sits above the 50-day ($0.7258) and 200-day ($0.5853) EMAs, sending bullish signals over the near and longer-term time horizons. Significantly, the 50-day EMA pulled further away from the 200-day EMA, supporting a move through the $0.8400 – $0.8600 resistance band to target $0.90.

The 14-4H RSI reading of 55.51 sends bullish XRP price signals and aligns with the 50-day EMA, with buying pressure outweighing selling pressure. Significantly, the RSI signals near-term bullish momentum, supporting a breakout from the $0.8400 – $0.8600 resistance band to target $0.90.

SEC Chatter and Gensler Appeal Silence Test Buyer Appetite

It was a relatively quiet Thursday session, with no SEC v Ripple Court-related activity to draw interest. However, the SEC v Ripple Court ruling, the SEC, and crypto classification chatter moved the dial.

On Thursday, Ripple Chief Legal Office Stuart Alderoty had this to say about the Senate hearing,

“It’s outrageous that in today’s senate hearing, Mr. Gensler again misstates the law (and the Howey test), suggesting that tokens, standing alone, are investment contracts. Is the SEC really going to continue to be allowed to peddle these falsehoods?”

On Wednesday, SEC Chair Gary Gensler was on Capitol Hill giving testimony at the Senate Subcommittee hearing on the fiscal year 2024 budget. The SEC Chair sought more funding to tackle the Wild West. However, despite the references to securities, Gensler remained silent on whether the SEC will appeal the SEC v Ripple Court ruling.

While the threat of an appeal remains an XRP headwind, news of US lawmakers taking their first steps toward introducing crypto legislation for discussion was good news.

However, it will be a slow process, with crypto legislation needing the support of both sides of the aisle. It could be a tall order considering the US administration’s view on the digital asset space.

The Day Ahead

SEC v Ripple Court ruling-related chatter will continue to be the focal point. While hopes of a settlement fade, any news of both sides offering dates to Judge Sarah Netburn would support an XRP breakout.

On Monday, Judge Netburn issued a Court Order calling on the SEC and Ripple to find three mutually convenient dates to schedule a settlement conference, with the caveat that both parties believe it would be productive at this time.

However, beyond the SEC and Ripple, we expect Binance and Coinbase-related news to move the dial.