XRP Needs Return to $0.50 to Give SEC v Ripple Optimists Voice

Key Insights:

• On Sunday, XRP bucked the broader market trend, gaining 1.45% to end the day at $0.48678.
• Dip buyers delivered a bullish weekend as the XRP community awaits SEC v Ripple Court rulings.
• However, the technical indicators remain bearish, leaving sub-$0.45 in view.

On Sunday, XRP rose by 1.45%. Following a 0.91% gain on Saturday, XRP ended the week down 6.56% to $0.48678. Despite the bullish session, XRP fell short of the $0.50 handle for the fourth consecutive session.

A bearish start to the day saw XRP fall to a first-hour low of $0.47448. Steering clear of the First Major Support Level (S1) at $0.4710, XRP rose to an early evening high of $0.49750. XRP broke through the First Major Resistance Level (R1) at $0.4875 and the Second Major Resistance Level (R2) at $0.4952 before easing back to end the day at $0.48678.

SEC v Ripple Chatter Delivers Much-Needed Support

It was a quiet Sunday. There were no updates from the ongoing SEC v Ripple case to provide direction. The lack of Court updates left case-related chatter to draw interest at the end of the week.

BitGo CEO Mike Belshe talked SEC v Ripple over the weekend, saying,

“My desire for Ripple to win is not for a love of XRP, but to enable regulatory change would have accommodated innovation like Bitcoin.”

While the crypto community continues to voice support for Ripple in the interest of the broader market, uncertainty toward the outcome of the SEC v Ripple case lingers.

Former Director of the SEC’s San Francisco regional office Marc Fagel responded to community questions on the SEC v Ripple case and the chances of a settlement, saying,

“A settlement wouldn’t be legal precedent. But if there were a settlement to be had, it seems it would’ve happened already (not that eve-of-trial settlements are unusual). Presumably, the impact of an injunction on future XRP sales is a sticking point.”

Fagel spoke earlier on timelines for Court rulings, saying,

“I try to avoid speculating, but my guess is a ruling is coming within days. Even if I’m wrong, there’s no basis to think the delay is anything beyond the complexity of the case. I don’t understand the ‘greater confusion’ point – Ripple is substantially different.”

The increased chatter will test investor sentiment, with hopes of a settlement having faded after the release of the William Hinman speech-related documents.

The Day Ahead

It is a quiet Monday session. There are no US economic indicators or Court rulings for investors to consider, with the US markets closed for Juneteenth Day. The lack of SEC v Ripple Court activity will leave SEC v Ripple-case-related chatter to provide direction.

However, SEC activity and SEC v Binance and Coinbase (COIN) case-related news will also move the dial.

XRP Price Action

At the time of writing, XRP was down 0.29% to $0.48535. A mixed start to the day saw XRP rise to an early high of $0.48763 before falling to a low of $0.48531.

Technical Indicators

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.49126. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered bearish signals.

A move through the 200-day ($0.49126) and 50-day ($0.49270) EMAs would give the bulls a run at the 100-day EMA ($0.49270) and R1 ($0.4980). However, failure to move through the 50-day ($0.49270) would leave S1 ($0.4750) in view. A move through the 50-day EMA would send a bullish signal.

Resistance & Support Levels

XRP needs to move through the $0.4863 pivot to target the First Major Resistance Level (R1) at $0.4980. A move through the Sunday high of $0.4975 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5093. The Third Major Resistance Level (R3) sits at $0.5323.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4750 in play. However, barring an SEC v Ripple-fueled sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4632. The Third Major Support Level (S3) sits at $0.4402.