XRP Price Action Turns Bullish on Sentiment towards SEC Case

Key Insights:

• On Saturday, XRP rose by 5.87% to end the day at $0.37739.
• Market sentiment towards the outcome of the SEC v Ripple case remained optimistic, supporting a second bullish session.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.40.

Following a 9.23% breakout session on Friday, XRP rallied by 5.87% on Saturday to end the day at $0.37739.

A bearish start to the day saw XRP fall to a mid-morning low of $0.34675 before making a move. Avoiding the First Major Support Level (S1) at $0.3328, XRP surged to a late afternoon high of $0.3800. XRP broke through the First Major Resistance Level (R1) at $0.3688.

However, coming up against the Second Major Resistance Level (R2) at $0.3811, XRP slipped back to sub-$0.3780. Hopes of a favorable outcome to the SEC v Ripple case continued to support the XRP return to $0.40.

Both Sides File Motions for Summary Judgement Ahead of Schedule

Overnight, defense attorney James Filan shared the latest from the SEC v Ripple case. The SEC and the Defendants (Ripple Labs, Brad Garlinghouse, and Chris Larsen) filed Motions for Summary Judgement ahead of schedule.

On September 17, the SEC filed the Notice of Motion for Summary Judgement against the Defendants. The Defendants also filed the Notice of Defendants’ Motion for Summary Judgement on Saturday.

James Filan took to Twitter, saying,

“BREAKING: Ripple Labs, Brad Garlinghouse, and Chris Larsen file Motion for Summary Judgement Seeking Judgment as a matter of law.”

The filings follow two bullish XRP sessions that stemmed from the optimism of a favorable outcome to the SEC v Ripple case.

Interestingly, the central figure in the SEC v Ripple case appears to have moved to the sidelines. Throughout 2022, the SEC has battled to shield William Hinman’s speech-related articles under the attorney-client privilege.

The former SEC Director of the Division of Corporation Finance, William Hinman, was a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

In July, the SEC filed an objection to a Court ruling denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege. The SEC has filed at least seven motions to shield the speech-related documents. However, in recent weeks reference to the Hinman documents has ceased, suggesting a possible agreement.

We speculated that the SEC would favor a settlement rather than disclose the content of Hinman’s speech-related docs. This was based on the SEC’s efforts to prevent the content from becoming a matter of public record.

The Motions for Summary Judgment also suggest a possible agreement between the two parties. There is some rationale behind the shift in sentiment towards the outcome of the SEC v Ripple case, with the Defendants unlikely to settle with unfavorable terms.

XRP Price Action

At the time of writing, XRP was down 2.12% to $0.36939. A bearish start to the day saw XRP fall from an early high of $0.37629 to a low of $0.36391.

Technical Indicators

XRP needs to avoid the $0.3680 pivot to target the First Major Resistance Level (R1) at $0.3893.

Following two breakout sessions, bullish sentiment from the broader market would support a run at the Second Major Resistance Level (R2) at $0.4013. Further updates on the SEC v Ripple case will likely influence.

Investor jitters could surface following the Motions for Summary Judgments. The Third Major Resistance Level (R3) sits at $0.4345.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3561 into play. Barring another extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3348.

The Third Major Support Level (S3) sits at $0.3015.

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 $0.34597. Following Saturday’s bullish cross, the 50-day EMA moved away from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were price positive.

A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout from R1 ($0.3893) to give the bulls a run at R2 ($0.4013). However, a fall through the EMAs would bring S1 ($0.3561) into play.