News Updates from the SEC v Ripple Case Provide XRP Support
- XRP is on the move, with recovery from sub-$0.70 levels supporting a near-term return to $0.80.
- Updates from the ongoing SEC v XRP case have delivered support this week.
- Key technical indicators remain bearish, however. XRP continues to sit below the 50-day EMA.
It’s been a bullish week for XRP, with Ripple v SEC news updates providing XRP price support.
XRP had been under pressure since late March. The bearish sentiment from the broader crypto market had pulled XRP back to sub-$0.70 levels.
Uncertainty over the likely outcome of the SEC v Ripple case, coupled with bearish sentiment across the broader crypto market, weighed on XRP.
Hopes of a favorable outcome to the case may have returned, delivering much-needed XRP price support.
SEC Loses Motion to Shield William Hinman Speech Related Documents
This week, judge Sarah Netburn denied an SEC motion for the courts to reconsider a ruling relating to a famous 2018 Hinman speech. Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
Defense lawyer James Filan took to Twitter on Tuesday, highlighting the big win for Ripple.
“The SEC seeks to have it both ways, but the speech was either intended to reflect agency policy or it was not. Having insisted that it reflected Hinman’s personal views, the SEC cannot now reject its own position.”
This is a very big win for Ripple.
— James K. Filan 🇺🇸🇮🇪90k+ (beware of imposters) (@FilanLaw) April 11, 2022
This week’s ruling followed some upbeat news updates from the case that had failed to support an XRP breakout.
Former SEC official William Hinman appears to be a central figure in Ripple’s defense and a concern for the SEC.
Last weekend, Empower Oversight successfully forced the SEC to release emails related to the Ripple lawsuit.
The emails insinuate that William Hinman continued to hold meetings with Simpson Thacher. These meetings took place despite warnings from the SEC ethics team.
In December, Empower Oversight filed a lawsuit against the SEC, claiming that former SEC officials were biased against Ripple Lab and XRP. Empower Oversight alleged that the former received millions of dollars from his former employer while helping guide the SEC’s regulation of cryptocurrencies.
His former employer, Simpson Thacher, is part of a group that promotes Enterprise Ethereum. The lawsuit claims that Hinman said that Ethereum wasn’t a security, causing an ETH price spike that preceded the Ripple Lab lawsuit, which led to the slide in the value of XRP.
For Ripple and XRP price support, favorable decisions to several motions would support a breakout ahead of the Joint Proposed Scheduling Order, due on April 22, 2022.
Last Saturday, Filan tweeted,
“Also, we’re still waiting for decisions on the SEC’s Motion for Partial Reconsideration, the Defendants’ Motions to Strike the Supplemental Export Report, the Defendants’ Motion to Compel Turnover of the Estabrook notes, and the decisions on the SEC’s proposed redactions.”
Also, we’re still waiting for decisions on the SEC’s Motion for Partial Reconsideration, the Defendants’ Motion to Strike the Supplemental Expert Report, the Defendants’ Motion to Compel Turnover of the Estabrook notes, and the decision on the SEC’s proposed redactions.
— James K. Filan 🇺🇸🇮🇪90k+ (beware of imposters) (@FilanLaw) April 8, 2022
The Estabrook notes detail the November 2018 meeting between Brad Garlinghouse and SEC commissioner Elad Roisman.
XRP Price Action
At the time of writing, XRP was up 1.69% to $0.7354. A bullish start to the day saw XRP rise to an early morning high of $0.7406.
XRP broke through the First Major Resistance Level at $0.7315 and the Second Major Resistance Level at $0.7399 before easing back.
XRP will need to hold above the First Major Resistance Level at $0.7315 and the $0.7167 pivot to move back through the Second Major Resistance Level at $0.7399.
Broader market sentiment would need to improve to support a return to $0.7375.
In the event of an extended rally, XRP should test resistance at $0.76. The Third Major Resistance Level sits at $0.7631.
A fall through the First Major Resistance Level and the pivot would bring the First Major Support Level at $0.7083 into play.
Barring an extended sell-off throughout the day, XRP should avoid sub-$0.70. The Second Major Support Level sits at $0.6935.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. Despite today’s bullish start, XRP remains below the 50-day EMA at $0.7486. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also fell back from the 200-day EMA, a bearish signal.
A move through the 50-day EMA to $0.75 levels would bring $0.80 into play.