XRP Recovers from Sub-$0.36 on a Friday SEC v Ripple Filing

Key Insights:

• On Friday, XRP bucked the broader crypto market trend, rising by 0.02% to end the day at $0.37736.
• Updates from the ongoing SEC v Ripple case deliver an XRP recovery from a Silvergate Bank-fueled slid to sub-$0.36.
• The technical indicators remained bearish, signaling a return to sub-$0.35.

On Friday, XRP rose by 0.02%. Following a 1.62% loss on Thursday, XRP ended the day at $0.37736. Significantly, XRP fell to sub-$0.36 for the first time since January 11 before recovering.

A bearish start to the day saw XRP tumble to an early morning low of $0.35200. XRP fell through the Major Support Levels before a late breakout to a session high of $0.38049. However, coming up short of the First Major Resistance Level (R1) at $0.3833, XRP eased back to end the day at $0.37736.

SEC v Ripple Case News Delivers XRP Price Support

After an extended silence, updates from the ongoing SEC v Ripple case delivered XRP price support on Friday.

Defense attorney James Filan shared the latest saying,

“Ripple files Letter Regarding recent Supreme Court case that supports Ripple’s Fair Notice Defense. This opinion strongly supports the Defendants’ fair notice defense because the government’s prior guidance appears to contradict its present litigation position.”

The filing relates to February 28, 2023, Supreme Court decision in Bittner v United States. According to the filing, the Court reversed a decision “by the Fifth Circuit that had held that the Bank Secrecy Act authorized a $10,000 penalty for each foreign account that an individual failed to disclose, rather than for each report that the individual failed to file.”

Outlining the elaborated comments of presiding Justice Gorsuch, the filing gave reason for why the opinion strongly supports the Defendants’ fair notice.

Notably, the Ripple defense team went on to say,

“As in Bittner, the relevant statutory provisions provide no discussion specific to the fact of this case. As in Bittner, the government’s prior guidance appears to contradict its present litigation position.”

The Day Ahead

Further updates and commentary from the SEC v Ripple case would likely have a more material influence than other crypto events. However, a lack of updates would leave XRP in the hands of the crypto news wires.

Investors should continue monitoring Binance, FTX, and Silvergate Bank-related news, with SEC activity and US lawmaker chatter likely to remain the focal point.

While Fed Fear may have eased following recent FOMC member rhetoric, regulatory risk remains a crypto headwind.

XRP Price Action

At the time of writing, XRP was down 0.25% to $0.37642. A mixed start to the day saw XRP rise to an early high of $0.37993 before falling to a low of $0.37594.

Technical Indicators

XRP needs to avoid the $0.3700 pivot to target the First Major Resistance Level (R1) at $0.3879 and the Friday high of $0.38049. A return to $0.38 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3984 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4269.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3594 into play. However, barring another extended broad-based crypto sell-off, XRP should avoid sub-$0.3550 and the Second Major Support Level (S2) at $0.3415. The Third Major Support Level (S3) sits at $0.3130.

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.37836. The 50-day EMA flattened on the 200-day EMA, while the 100-day EMA eased back from the 200-day EMA. The signals were bearish.

An XRP move through the 50-day EMA ($0.37836) would support a breakout from the 100-day and 200-day EMAs to target R1 ($0.3879) and resistance at $0.39. An XRP move through the 50-day EMA would send a bullish signal. However, failure to move through the 50-day EMA ($0.37836) would leave the Major Support Levels in play.