XRP Targets $0.36 as Investor Focus Returns to the SEC v Ripple Case

Key Insights:

• On Sunday, XRP rose by a modest 0.20% to end the day at $0.34451.
• The broader crypto market delivered late support to reverse losses from earlier in the day.
• The technical indicators are turning bullish, with XRP sitting above the 100-day EMA, signaling a return to sub-$0.36.

On Sunday, XRP rose by 0.20%. Reversing a 0.21% loss from Saturday, XRP ended the week up by 1.77% to $0.34451. Significantly, XRP revisited sub-$0.34 for the third time in four sessions.

A bearish start to the day saw XRP slide to an early low of $0.33666. XRP fell through the First Major Support Level (S1) at $0.3417 and the Second Major Support Level (S2) at $0.3396. However, avoiding sub-$0.3350, XRP rallied to a final-hour high of $0.34672. XRP broke through the First Major Resistance Level (R1) at $0.3457 before easing back to end the day at $0.34451.

XRP Trailed on Sunday with SEC v Ripple Uncertainty Testing Buyers

There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of updates left investors to focus on the Court schedule and this week’s Court filings.

Today, parties must file oppositions to Omnibus Motions to seal ahead of January 13, when parties must file the Daubert Motions and accompanying exhibits on the public docket.

The filings will draw plenty of interest, with uncertainty over the outcome of the SEC v Ripple case returning in recent weeks. However, investors await two pivotal Court rulings, which may decide the outcome.

Investors await a ruling on the SEC motion to redact content from the William Hinman speech-related documents, while the parties also await the Court ruling on the Summary Judgment Reply briefs.

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.

Today, while the broader crypto market will provide direction, the Court filings will be the key driver. Investors are looking for the SEC to settle, which continues to place the Hinman documents front and center.

XRP Price Action

At the time of writing, XRP was up 1.71% to $0.35040. A mixed start to the day saw XRP fall to an early low of $0.34354 before rising to a high of $0.35045.

XRP broke through the First Major Resistance Level (R1) at $0.3486.

Technical Indicators

XRP needs to hold above R1 and the $0.3426 pivot to target the Second Major Resistance Level (R2) at $0.3527. Avoiding a return to sub-$0.35 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Third Major Resistance Level (R3) at $0.3628.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $0.3385 into play. However, barring an extended sell-off, XRP should avoid sub-$0.3350 and the Second Major Support Level (S2) at $0.3326. The Third Major Support Level (S3) sits at $0.3225.

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 bullish signal.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.34725. 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 move through R2 ($0.3527) would give the bulls a run at the 200-day EMA ($0.35737) and R3 ($0.3628). However, a pullback through R1 ($0.3486) would give the bears a run at the 100-day ($0.34725) and the 50-day ($0.34361). A fall through the 50-day EMA would be a bearish signal.