XRP Price Action Turns Bullish as Ripple Reacts to SEC Court Filings

Key Insights:

• On Wednesday, XRP rose by 1.78% to extend the winning streak to three sessions.
• XRP bucked the top ten trend, with investors reacting to the Ripple response to the latest SEC filings in the ongoing SEC v Ripple case.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.55.

On Wednesday, XRP rose by 1.78%. Following a 3.77% rally on Tuesday, XRP ended the day at $0.48875.

A bearish start to the day saw XRP fall to an early morning low of $0.47259. Steering clear of the First Major Support Level (S1) at $0.4597, XRP rallied to a late afternoon high of $0.50139. XRP broke through the First Major Resistance Level (R1) at $0.4930 to come within range of the Second Major Resistance Level (R2) at $0.5057 before ending the day at sub-$0.49.

US economic indicators pegged XRP back ahead of a late afternoon rally. However, the SEC v Ripple case updates delivered an XRP breakout session.

Ripple Shows Its Teeth in Reaction to the SEC’s Latest Filings

Updates from the ongoing SEC v Ripple case delivered XPR price support on Wednesday.

Defense attorney James Filan shared Ripple’s reaction to the SEC’s Court filings on Tuesday, saying,

“Ripple slams the SEC and the SEC’s opposition to the I-Remit and TapJets motions to file amicus briefs.”

On Tuesday, the SEC opposed I-Remit and TapJets motions to file amicus briefs. According to defense attorney James Filan,

“The SEC opposes the I-Remit and TapJets motions to file amicus briefs, claiming the proposed briefs are improper attempts to offer evidence outside the constraints of discovery restrictions, the rules of evidence, and the Court’s prior order.”

Last Friday, private jet charter company TapJets requested to file an amicus brief to support Ripple. According to the filing,

“TapJets interest, in this case, is as a business that accepts cryptocurrency, including XRP, in exchange for its services as a fiat currency substitute. For TapJets, the acceptance of XRP as payment for services is vital in some instances.”

I-Remit also filed a request to file an amicus brief in support of the Ripple Defendants’ Motion for Summary Judgment.

James Filan shared the filing, saying,

“I-Remit, Inc., a global payment remittance company that uses the RippleNet software, has filed an application to file an amicus brief in support of the Defendants’ Motion for Summary Judgment.”

I-Remit stated within the request,

“As a major ODL customer, I-Remit is interested in the outcome of this lawsuit because of its heavy reliance on XRP and the XRL Ledger. I-Remit has deep knowledge of these technologies that will aid the Court’s evaluation of the arguments advanced by the US Securities and Exchange Commission (“SEC”).

Interestingly and as Ripple points out, both parties are independent and can demonstrate the uses of XRP that extend beyond the SEC’s definition of security. The Defendants point this out in its Court filing, saying,

“The SEC remarkably suggests that it would be prejudiced by its inability to evaluate the factual veracity of their claims or show that Movants’ ‘facts’ are disputed.”

The filing went on to say,

“The SEC has sought summary judgment based on what it erroneously claims are undisputed facts that every purchase of XRP is an investment and that every XRP purchaser expects profits from Ripple’s efforts. Nothing could be more to the point than these two amicus briefs (or at least disputing) both points.”

In this case, the SEC’s opposition and the Defendants’ response provide the Court with a different viewpoint from an XRP use perspective.

XRP Price Action

At the time of writing, XRP was up 1.27% to $0.49494.

A bullish start to the day saw XRP rise from an early low of $0.48835 to a high of $0.49781 before easing back.

Technical Indicators

XRP needs to avoid the $0.4876 pivot to retarget the First Major Resistance Level (R1) at $0.5026. Investors will look out for any updates from the SEC and the Defendants. Talk of an SEC appeal to the Hinman ruling would likely limit the upside. However, a lack of updates would allow US economic indicators to influence.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5164. The Third Major Resistance Level (R3) sits at $0.5452.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4738 into play. Barring an extended sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4588.

The Third Major Support Level (S3) sits at $0.4300.

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 $0.46767. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

An XRP hold above the 50-day EMA ($0.46767) would support a breakout from R1 ($0.5026) to target R2 ($0.5164). However, a fall through S1 ($0.4738) would give the bears a run at the 50-day EMA ($0.46767) and S2 ($0.4588). The 200-day EMA sits at $0.42013.