SEC v Ripple Update: XRP Tests Support on the Latest SEC Filing

Key Insights:

• On Thursday, XRP returned to positive territory, rising by 0.99% to end the day at $0.3668.
• XRP found support from the NASDAQ 100 and the broader crypto market, while the latest SEC filing tested support.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA.

On Thursday, XRP rose by 0.99%. Partially reversing a 2.65% decline from Wednesday, XRP ended the day at $0.3668.

A choppy session saw XRP slide through the First Major Support Level at $0.3533 to an early afternoon low of $0.3487.

Steering clear of the Second Major Support Level at $0.3434, XRP rallied to a late high of $0.3682 before easing back.

Despite the late rally, XRP came up short of the First Major Resistance Level at $0.3774.

News of SEC Plans to Appeal the Hinman Court Ruling Tested Support

On Thursday, the SEC requested permission from the courts to appeal against the Hinman court ruling.

Defense attorney Jame Filan shared the request, saying,

“The SEC has requested permission to file a 30-page opening brief and a 10-page reply brief in support of the SEC’s objections to Magistrate Judge Netburn’s Ruling Ordering the SEC to disclose the Hinman Speech documents. Ripple objects.”

Earlier this month, Judge Netburn denied the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

An appeal was likely considering the SEC made at least six filings in opposition to the Defendants’ August 10, 2021, motion to compel.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was down 0.27% to $0.3658.

Technical Indicators

XRP needs to avoid the $0.3612 pivot to target the First Major Resistance Level (R1) at $0.3738.

XRP would need support from the broader market to break out from the Thursday high of $0.3682 and return to $0.37 levels.

In the case of an extended crypto rally, XRP could test resistance at the Second Major Resistance Level (R2) at $0.3807.

The Third Major Resistance Level (R3) sits at $0.4002.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3543 into play.

Barring an extended sell-off, XRP should avoid sub-$0.3450 and the Second Major Support Level (S2) at $0.3417.

The Third Major Support Level (S3) sits at $0.3222.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.3528. Today, the 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA, with both indicators price positives.

A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout from R1 to bring R2 and $0.40 into play.

However, a fall through the 50-day EMA would likely see XRP test S1 and support at $0.3450.