XRP Optimists to Target $0.50 on Talk of an SEC v Ripple Ruling

Key Insights:

• On Saturday, XRP joined the broader market in the green, gaining 0.91% to end the day at $0.47982.
• SEC v Binance-related news provided much-needed support as investors grapple with the ongoing SEC v Ripple case.
• The technical indicators remain bearish, leaving sub-$0.45 in view.

On Saturday, XRP rose by 0.91%. Reversing a 0.93% decline from Friday, XRP ended the day at $0.47982. Despite the bullish session, XRP fell short of the $0.50 handle for the third consecutive session.

A bearish start to the day saw XRP fall to an early morning low of $0.46982. Steering clear of the First Major Support Level (S1) at $0.4595, XRP rose to a mid-morning high of $0.48635. However, falling short of the First Major Resistance Level (R1) at $0.4871, XRP eased back to end the day at $0.47982.

Binance Deal with SEC Delivers Much-Needed Price Support

It was a quiet Saturday session, with no updates from the ongoing SEC v Ripple case to provide direction. The lack of Court updates left the crypto news wires to influence the morning.

On Saturday, Binance struck a deal with the SEC to address the motion to freeze Binance US assets. The news supported a broad-based crypto rally, with investors showing relief that Binance US can remain open for business during the SEC case.

However, the breakout session was short-lived, with market angst over the SEC v Ripple case weighing on investor sentiment. The release of the William Hinman speech-related documents removed hope of an SEC settlement, leaving XRP and the US digital asset space in the hands of the Courts.

On Saturday, Ripple CEO Brad Garlinghouse had this to say about the Hinman docs and the SEC,

“The SEC is looking to kill crypto innovation in the United States and its current share. An unelected bureaucrat, I might add, is weaponizing the lack of regulatory clarity to exert jurisdiction over the entire crypto space.”

Garlinghouse added,

“This is the definition of putting politics over people. It’s the pursuit of power over sound policy. They knowingly created confusion about the rules and used that confusion to regulate by enforcement.”

As the XRP Community awaits the outcome of the SEC v Ripple case, investor jitters will test buyer appetite.

Former Director of the SEC’s San Francisco regional office Marc Fagel shared his view on the timeline for a conclusion, 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 Day Ahead

It is a quiet Sunday session. There are no US economic indicators or Court rulings for investors to consider. The lack of SEC v Ripple Court activity will leave investors to consider the possible outcomes of the SEC v Ripple case and its broader impact on the US digital asset space.

We expect increased chatter, with Brad Garlinghouse and Marc Fagel seemingly expecting Court rulings very shortly.

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

XRP Price Action

At the time of writing, XRP was up 0.44% to $0.48194. A mixed start to the day saw XRP fall to an early morning low of $0.47448 before rising to a high of $0.48270.

XRP 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 $0.49144. 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 R1 ($0.4875) and the 200-day EMA ($0.49144) would give the bulls a run at the 50-day EMA ($0.49387) and R2 ($0.4952). However, failure to move through the 200-day ($0.49144) would leave S1 ($0.4710) in view. A move through the 50-day EMA would send a bullish signal.

Resistance & Support Levels

XRP needs to avoid the $0.4787 pivot to target the First Major Resistance Level (R1) at $0.4875. A move through the Saturday high of $0.48635 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 $0.4952 and resistance at $0.50. The Third Major Resistance Level (R3) sits at $0.5117.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4710 into play. However, barring another risk-off-fueled sell-off, XRP should avoid sub-$0.46. The Second Major Support Level (S2) at $0.4621 should limit the downside. The Third Major Support Level (S3) sits at $0.4456.