XRP Return to $0.37 to Test Sellers at $0.38 on SEC v Ripple Optimism

Key Insights:

• On Tuesday, XRP consolidated the Monday 5.69% rally with a 0.51% gain.
• It was a quiet session, with no US economic indicators or Court rulings from the SEC v Ripple case to influence.
• The technical indicators turned more bullish, with XRP sitting above the 100-day EMA, supporting a near-term rise to $0.40.

On Tuesday, XRP rose by 0.51%. Following a 5.69% rally from Monday, XRP ended the day at $0.36774. Significantly, XRP held onto the $0.36 handle for the second consecutive session.

A bearish start to the day saw XRP fall to an early morning low of $0.35858. However, steering clear of the First Major Support Level (S1) at $0.3511, XRP rallied to a late morning high of $0.37270. Coming up short of the First Major Resistance Level (R1) at $0.3752, XRP fell back to sub-$0.3650 levels before finding late support to end the day in positive territory.

Updates from the ongoing SEC v Ripple case had a muted impact, with investor optimism toward the outcome of the case delivering support.

Investor Optimism Muted the Effects of a Bearish NASDAQ Index

On Tuesday, Lewis Cohen filed a Motion to Appear Pro Hac Vice on behalf of Paradigm Operations LP. In mid-December, Paradigm Operations LP attorney Rodrigo Seira had filed a motion to appear Pro Hac Vice before the Thursday filing. Lewis Cohen is a NY attorney at Cohen Wilson LLP.

Paradigm Operations LP is one of many entities that filed Amicus briefs in favor of Ripple and the Defendants.

While investors continue monitoring updates from the SEC v Ripple case, two pending Court rulings remain the focal points. The Court rulings on the Omnibus Motions to Seal all materials relating to the Summary Judgment motions and the Summary Judgment Reply briefs could decide the outcome.

For the SEC, shielding the William Hinman speech-related documents appears to be the priority. The SEC sought to protect the Hinman speech-related documents in the filing of Omnibus Motions to Seal all materials relating to the Summary Judgment motions.

The request followed more than six attempts to protect the William Hinman speech-related documents under the attorney-client privilege. A Court ruling against the SEC may force Gary Gensler into a settlement to avoid the documents becoming a matter of public record.

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.

XRP Price Action

At the time of writing, XRP was down 1.14% to $0.36356. A mixed start to the day saw XRP rise to an early high of $0.36836 before falling to a low of $0.36298.

Technical Indicators

XRP needs to move through the $0.3663 pivot to target the First Major Resistance Level (R1) at $0.3741. A return to $0.37 and a move through the Tuesday high of $0.37270 would support another bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.3805 would likely come into play. The Third Major Resistance Level (R3) sits at $0.3946.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3600 in play. However, barring an extended sell-off, XRP should avoid sub-$0.3550 and the Second Major Support Level (S2) at $0.3522. The Third Major Support Level (S3) sits at $0.3381.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.36077. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A breakout from the 200-day EMA ($0.37228) and R1 ($0.3741) would give the bulls a run at R2 ($0.3805). However, a fall through the 100-day EMA ($0.36027) and S1 ($0.36000) would bring the 50-day EMA ($0.35624) into play. A fall through the 50-day EMA would send a bearish signal.