XRP Price Action Remains Bullish as Investors Await SEC v Ripple News

Key Insights:

• On Sunday, XRP broke the broader market trend, with a 0.50% gain to end the week up 37%.
• Optimism towards the SEC v Ripple case remained the key driver.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a breakout from $0.55.

On Sunday, XRP rose by 0.50%. Partially reversing a 3.87% fall from Saturday, XRP ended the week up 37.31% to $0.49052.

A bearish start to the day saw XRP fall to an early low of $0.47547 before making a move. Steering clear of the First Major Support Level (S1) at $0.4669, XRP rallied to a mid-day high of $0.52023. XRP broke through the First Major Resistance Level (R1) at $0.5141 before falling back to sub-$0.50.

A lack of SEC v Ripple case updates and external market forces drew buyers in after Saturday’s bearish session.

Investor Optimism Remains Buoyant Despite a Lack of Case Updates

Optimism towards the outcome of the SEC v Ripple case continued to deliver XRP price support. There were no updates from the Court or comments from the SEC or the defendants to support a bullish session.

Additionally, the broader crypto market fell for a second consecutive session, leaving XRP to buck the top ten trend.

Over the weekend, defense attorney James Filan interpreted the SEC’s argument in a series of tweets, saying,

“We aren’t saying XRP is a security per se. What we are saying is that any purchase of XRP, as a matter of economic reality, is an investment in a common enterprise with other XRP holders and with Ripple.”

Filan added,

“Whether it’s through horizontal commonality or strict vertical commonality, it is an investment in a common enterprise with other XRP holders and with Ripple. So, while XRP may not be a security per se, there’s no other possible way to offer or sell XRP EXCEPT as a security.”

Filan concluded,

“And when you realize what the SEC is saying, no matter how it’s framed, the judgment that the SEC wants is one that incorporates secondary sales.”

Filan referenced the language below, highlighting the words “a purchase” and “all units.”

“First, the undisputed facts show that, as a matter of economic reality, a purchase of XRP is an investment in a common enterprise with other XRP holders and with Ripple. All units of XRP are fungible with each other, and the price of all units of XRP rise or fall equally.”

While the interpretations have no bearing on the case, the XRP community highlighted flaws in the SEC arguments.

Barring a surprise announcement, the next date on the schedule is October 18. Parties must file all materials relating to oppositions to summary judgment motions.

XRP Price Action

At the time of writing, XRP was up 0.37% to $0.49234. A choppy start to the day saw XRP fall to an early low of $0.48867 before rising to a high of $0.50134.

Technical Indicators

XRP needs to move through the $0.4954 pivot to target the First Major Resistance Level (R1) at $0.5153 and the Sunday high of $0.52023. Investor sentiment towards the SEC v Ripple case will need to remain positive to support the current uptrend.

Another extended rally would support a run at the Second Major Resistance Level (R2) at $0.5402 and $0.55. The Third Major Resistance Level (R3) sits at $0.5849.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4706 in play. Barring an extended sell-off, XRP should steer clear of the Second Major Support Level (S2) at $0.4506.

The Third Major Support Level (S3) sits at $0.4059.

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 $0.44508. The 50-day EMA widened from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were price positives.

Following the breakout from the 50-day EMA, the current trend supports a breakout from R1 ($0.5153) to target $0.55. However, a slide through S1 ($0.4706) would give the bears a run at S2 ($0.4506) and the 50-day EMA ($0.44508). The 200-day EMA sits at $0.38252.