XRP Price Target Remains $0.55 on Bullish SEC v Ripple Case Updates

Key Insights:

• On Friday, XRP bucked the broader market trend, rising by 2.05% to end the day at $0.48887.
• Updates from the ongoing SEC v Ripple case muted the bearish market reaction to the US economic indicators and Fed sentiment.
• The technical indicators are bullish, with XRP sitting above the 100-day EMA, supporting a return to $0.55.

On Friday, XRP rose by 2.05%. Reversing a 1.91% fall from Thursday, XRP ended the day at $0.48887. Notably, XRP ended the day at sub-$0.49 for the fourth time in nine sessions, despite the bullish session.

A bullish morning saw XRP rally from an early low of $0.47828 to an early afternoon high of $0.51180. XRP broke through the First Major Resistance Level (R1) at $0.4986. However, coming up short of the Second Major Resistance Level (R2) at $0.5181, XRP fell back to a low of $0.48158 before steadying.

Updates from the ongoing SEC v Ripple case delivered XRP price support, while US economic indicators led to a partial reversal through the afternoon session.

TapJets Amicus Brief Filing Delivers XRP Price Support in Bearish Backdrop

On Friday, TapJets filed its Amicus Brief. CryptoLawUS shared the filing, saying,

“Amicus Brief filed by @TapJets in support of Defendants, and Exhibit A (Expert Testimony by Eugene Kesselman).”

Within the filing, TapJets highlights,

“TapJets’ sole interest in this litigation is the preservation of the use of XRP as a fiat currency substitute when the limitations inherent in the banking system under which fiat currency operations and fiat currency itself fails.”

TapJets added,

“If TapJets permanently loses its ability to accept XRP as a fiat currency substitute, TapJets will lose significant income, including but not limited to, the investment in technology that was developed to accept XRP as a form of payment, significant business growth opportunities, as well as valuable goodwill.”

The filing went further to discuss the legal argument and the Howey test by stating,

“TapJets writes this amicus brief because the third prong of the Howey Test is not satisfied given TapJets’ use of XRP as a fiat currency substitute.”

TapJets added,

“(1) TapJets did not make an investment of money in XRP, instead, it received XRP in the form of payment of its product and services.

(2) TapJets is not in common enterprise with Ripple Labs or XRP, the use of protocol or technology was limited to being able to accept the payment in the form of XRP.

(3) TapJets had no expectation of profit in XRP by its acceptance of XRP.”

Following the I-Remit filing from earlier in the week, both filings provide the Court with an alternative viewpoint from that of the SEC.

However, a bearish second half of the day left reversed early gains. US economic indicators and Fed fear led to a return to sub-$0.49.

XRP Price Action

At the time of writing, XRP was up 0.11% to $0.48942.

Technical Indicators

XRP needs to move through the $0.4930 pivot to take a run at the First Major Resistance Level (R1) at $0.5077 and the Friday high of $0.5118. Friendly updates from the SEC v Ripple case and bullish market sentiment would support a return to $0.51.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5265 and $0.53. The Third Major Resistance Level (R3) sits at $0.5600.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4742 in play. However, barring an extended sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4595. The Third Major Support Level (S3) sits at $0.4259.

The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.48124. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The signals were mixed.

A move through the 50-day EMA ($0.49150) would support a breakout from R1 ($0.5077) to give the bulls a run at R2 ($0.5265) and $0.53. However, failure to move through the 50-day EMA ($0.49150) would bring the 100-day EMA ($0.48124) and S1 ($0.4742) into view.