XRP Price Action Turns Bullish Despite Ongoing SEC v Ripple Uncertainty

Key Insights:

• On Sunday, XRP fell by 1.69% to end the day at $0.34617.
• Another quiet session left investors in a cautious mood, with Court rulings from the SEC v Ripple case pending.
• The technical indicators remain bearish, with XRP sitting below the 50-day EMA, supporting a near-term decline to $0.30.

On Sunday, XRP fell by 1.69%. Following a 0.65% loss on Saturday, XRP ended the week down by 1.00% to $0.34617. XRP ended the day at sub-$0.35 for the first time in three sessions.

A mixed start to the day saw XRP rise to an early morning high of $0.35172 before hitting reverse. Coming up short of the First Major Resistance Level (R1) at $0.3540, XRP slid to an early afternoon low of $0.34423. XRP fell through the Major Support Levels. However, finding afternoon support, XRP broke back through the Third Major Support Level (S3) at $0.3459 to end the day at $0.34617.

There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of updates left investors in a cautious mood.

Pending Court Rulings from the SEC v Ripple Test Investor Sentiment

Investors are currently waiting on two Court rulings that could decide the outcome of the SEC v Ripple case.

Last week, the SEC sought to shield the Hinman speech-related documents in the filing of Omnibus Motions to Seal all materials relating to the Summary Judgment motions.

Before the Thursday filing, the SEC had made at least six attempts to protect the William Hinman speech-related documents under the attorney-client privilege. The failed attempts resulted in the Court ordering the SEC to hand the documents over to the Defendants.

For the XRP community, the William Hinman speech-related documents remain the focal point. Following the news of FTX relations with members of the SEC before the collapse, SEC Gary Gensler will want to avoid any further controversy. SEC attempts at preventing the Hinman documents from becoming a matter of public record suggest that they could damage the reputation of the SEC.

Because of this, the consensus is that the SEC may prefer to settle should the  ruling on Thursday’s filing go against them.

However, settling in the SEC v Ripple case would bring greater lawmaker scrutiny and could pass the responsibility of regulating the digital asset space to the CFTC, a preferred eventuality within the crypto community. Both outcomes would be XRP positive.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Uncertainty over the Court ruling on the Summary Judgment Reply briefs and Thursday’s filings will likely limit any material upside.

XRP Price Action

At the time of writing, XRP was up 1.11% to $0.35000. A bullish start to the day saw XRP rise from an early low of $0.34565 to a high of $0.35000.

Technical Indicators

XRP needs to avoid the $0.3474 pivot to target the First Major Resistance Level (R1) at $0.3505 and the Sunday high of $0.35172. A move through R1 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3549 and $0.36 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3624.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3430) into play. However, barring an extended sell-off, XRP should avoid sub-$0.34 and the Second Major Support Level (S2) at $0.3399. The Third Major Support Level (S3) sits at $0.3324.

Today, there are unlikely to be any material updates from the SEC v Ripple case to influence, which could test buyer appetite later in the day.

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 $0.35162. 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 breakout from R1 ($0.3505) and the 50-day EMA ($0.35162) would support a move through R2 ($0.3549) to target $0.36. However, failure to move through the 50-day EMA ($0.35162) would leave XRP at risk of a fall to sub-$0.34.