XRP Under Pressure after Latest Filing in the SEC v Ripple Case

Key Insights:

• On Tuesday, XRP bucked the broader crypto market trend, falling by 0.08% to end the day at $0.51756.
• Updates from the SEC v Ripple case weighed on XRP.
• However, the technical indicators are bullish, signaling a return to $0.55.

On Tuesday, XRP slipped by 0.08%. Partially reversing a 2.39% gain from Monday, XRP ended the day at $0.51756. Despite the bearish session, XRP avoided sub-$0.51 for the first time since March 30.

A bullish start to the day saw XRP rise to a mid-morning high of $0.52858. XRP broke through the First Major Resistance Level (R1) at $0.5251 before falling to a late afternoon low of $0.5113. However, steering clear of the First Major Support Level (S1) at $0.5056, XRP revisited the $0.518 handle before easing back into negative territory.

SEC Move in the SEC v Ripple Case Leaves XRP Trailing

After an extended silence, updates from the ongoing SEC v Ripple case drew interest on Tuesday.

Overnight, defense attorney James Filan shared the latest, saying,

“SEC files Letter of Supplemental Authority in further support of its Motion for Summary Judgment.”

The SEC targeted the SEC v Commonwealth Equity Servs., LLC case, which favored the SEC.

Filings continue to influence investor sentiment, with the SEC filing likely in response to the Ripple letter referencing comments from Voyager Digital presiding Judge Wiles.

The Day Ahead

Updates from the ongoing SEC v Ripple case will influence investor sentiment, with the Ripple defense likely to respond to the latest SEC filing.

However, a lack of SEC v Ripple-related news will leave regulatory activity in the spotlight. The IMF/World Bank Spring Meetings will get underway today and will likely draw plenty of interest. Binance and Coinbase (COIN) commentary will also move the dial.

Away from the crypto market, US economic indicators and sentiment toward Fed monetary policy will also influence. The US CPI Report and FOMC Meeting Minutes will be in focus.

XRP Price Action

At the time of writing, XRP was down 0.50% to $0.51499. A mixed start to the day saw XRP rise to an early high of $0.51792 before falling to a low of $0.51256.

Technical Indicators

XRP needs to move through the $0.5191 pivot to target the First Major Resistance Level (R1) at $0.5271 and the Tuesday high of $.52858. A return to $0.52 would signal a bullish session. However, 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 $0.5365. The Third Major Resistance Level (R3) sits at $0.5540.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5096 in play. However, barring an extended sell-off, XRP should avoid sub-$0.5050 and the Second Major Support Level (S2) at $0.5016. The Third Major Support Level (S3) sits at $0.4842.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.50924. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above S1 ($0.5096) and the 50-day EMA ($0.50924) would support a breakout from R1 ($0.5261) to target R2 ($0.5365) and $0.54. However, a fall through S1 ($0.5096) and the 50-day EMA ($0.50924) would bring S2 ($0.5016) into view. A fall through the 50-day EMA would send a bearish signal.