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SEC v Ripple (XRP): Objections, Motions, and Rulings End a Busy Week

By:
Bob Mason
Published: Jul 23, 2022, 01:23 GMT+00:00

XRP joined the broader crypto market in the red, weighed by the broader crypto market. Court rulings on the Hinman docs remained an area of focus.

XRP

Key Insights:

  • On Friday, XRP succumbed to broader crypto market forces, falling by 2.40%.
  • Updates from the Securities and Exchange Commission (SEC) case against Ripple failed to support an XRP breakout.
  • The technical indicators are bullish, with XRP sitting at the 50-day EMA.

On Thursday, XRP fell by 2.40% on Friday. Reversing a 0.99% gain from Thursday, XRP ended the day at $0.3580.

Tracking the broader crypto market, XRP rose to a mid-day high of $0.3714 before hitting reverse.

Falling short of the First Major Resistance Level at $0.3738, XRP slid to a low of $0.3542.

However, steering clear of the First Major Support Level at $0.3543, XRP tested resistance at $0.36 before easing back.

US Economic Indicators Overshadow Updates from the SEC v Ripple Case

On Friday, there was a flurry of activity, with the SEC and Ripple filing motions in response to the SEC’s request to file an appeal against the Hinman court ruling.

Firstly, Ripple objected to the SEC’s request to file a 30-page opening brief and a 10-page reply brief to support the SEC’s objections to the Hinman ruling.

Defense attorney James Filan shared the filing, saying,

“Ripple defendants file their opposition to the SEC’s motion requesting an excess length brief and a reply brief in support of the SEC’s forthcoming objections to Judge Netburn’s Order compelling the SEC to release the Hinman documents.”

In response to the SEC request and Ripple’s objection, the court denied the 30-page opening brief while granting the request to file a 10-page reply brief.

James Filan shared the ruling, saying,

“In connection with the SEC’s Objection to Judge Netburn’s Ruling on the Hinman Speech documents, the SEC’s motion to file a 30 page opening brief was denied (limited to 20 pages), but its request to file a 10-page reply brief was granted.”

An appeal and an objection were likely when 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 up 0.11% to $0.3584.

XRP sees a choppy start
XRPUSD 230722 Daily Chart

Technical Indicators

XRP needs to move through the $0.3612 pivot to target the First Major Resistance Level (R1) at $0.3682 and test resistance at the Friday high of $0.3714.

XRP would need support from the broader market to break out from $0.3650 and return to $0.37.

In the case of an extended crypto rally, XRP could test resistance at the Second Major Resistance Level (R2) at $0.3784.

The Third Major Resistance Level (R3) sits at $0.3956.

Failure to move through the pivot would bring the First Major Support Level (S1) at $0.3510 into play.

Barring an extended sell-off, XRP should avoid sub-$0.3450 and the Second Major Support Level (S2) at $0.3440.

The Third Major Support Level (S3) sits at $0.3268

XRP return to $0.36 the key
XRPUSD 230722 Hourly Chart

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 $0.3545. 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 $0.38 into play.

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

EMAs bullish
XRPUSD 230722 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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