SEC Looks for an Extension of Time in the Case Against Ripple Lab

Key Insights:

• It was a bullish start to the week for XRP, which rallied by 4.08% on Monday.
• Market sentiment towards the SEC v XRP continues to provide price support.
• Key technical indicators are bullish, with XRP sitting well above the 50-day EMA.

Ripple’s XRP rallied by 4.08% on Monday. It was a mixed day for the broader crypto market. Market sentiment towards the Ripple v SEC case continued to provide XRP price support, with XRP now clear of a March low of $0.6966.

SEC v Ripple Case Updates Deliver XRP Price Support

News updates on the SEC v Ripple case have been positive for Ripple and its executives, Bradley Garlinghouse and Christian A. Larsen.

On March 11, court documents revealed that the presiding judge over the SEC v Ripple case would allow Ripple to use a fair notice defense. The court ruling in favor of Ripple Lab was a pivotal decision in the ongoing saga that has seen XRP down as low as $0.2481 following the SEC’s case filing.

Last week, the SEC attempted to have a ruling from earlier in the year reversed. The court had previously ruled in favor of Ripple Lab, vis-à-vis releasing internal email communications dating back to 2018.

The internal communications are concerning Ethereum (ETH) and a famous William Hinman speech, where he had stated,

“Ethereum is not a security.”

This week, the SEC was back in action. On Monday, the SEC reportedly filed a motion for a “brief extension” to allow for additional discovery. There were no details on the discovery in question, with Ripple Lab requesting the court to deny the motion. It is not the first time that the SEC has filed such motions.

The motion and request to deny had a muted impact on XRP.

XRP Price Action

At the time of writing, XRP was up by 0.58% to $0.8433.

A mixed start to the day saw XRP fall to an early morning low of $0.8347 before striking a morning high of $0.8646. XRP came within range of the First Major Resistance Level at $0.8657 before easing back.

Technical Indicators

XRP will need to avoid the day’s $0.8270 pivot to make another run on the First Major Resistance Level at $0.8657. XRP would need the broader crypto market to support a move back through to $0.86 levels.

An extended rally would test the Second Major Resistance Level at $0.8931 and resistance at $0.90. The Third Major Resistance Level sits at $0.9592.

A fall through the pivot would bring the First Major Support Level at $0.7997 into play. Barring an extended sell-off, XRP should steer clear of sub-$0.79. The Second Major Support Level sits at $0.7609.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. XRP sits well above the 50-day EMA, currently at $0.7998.

This morning, the 50-day pulled away from the 100-day EMA, with the 100-day EMA moving away from the 200-day EMA, signaling further upside ahead

Holding above the day’s pivot and the 50-day EMA would support a run at $0.90 levels.