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XRP and $0.65 in the Hands of Judge Torres Court Ruling

By:
Bob Mason

XRP found much-needed support this morning, with SEC appeal-related chatter drawing interest. However, investors should look out for the Ripple response.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • XRP saw red on Saturday, falling 0.60% to end the day at $0.6273.
  • However, the hopes of Judge Torres denying the SEC request to file an interlocutory appeal provided support this morning.
  • The shorter-term technical indicators remain bearish, supporting a return to sub-$0.60.

On Saturday, XRP fell by 0.60%. Following a 0.24% decline on Friday, XRP ended the day at $0.6273. Despite the bearish session, XRP avoided sub-$0.62 for the fourth consecutive session.

Weekly Chart sends bullish price signals.
XRPUSD 130823 Weekly Chart

XRP Price Action

This morning, XRP was up 0.13% to $0.6281. A mixed start to the day saw XRP fall to an early low of $0.6258 before rising to a high of $0.6299.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6417 – $0.6530 resistance band. However, XRP held above the 50-day ($0.6263) and 200-day ($0.5230) EMAs, sending bullish near and longer-term price signals.

Notably, the 50-day EMA pulled away from the 200-day EMA, a bullish price signal.

However, looking at the 14-Daily RSI, the 43.25 reading reflects bearish sentiment, signaling a fall through the 50-day EMA ($0.6263) to bring the $0.5900 – $0.5750 support band into play. A hold above the 50-day EMA ($0.6263) would support a breakout from the $0.6417 – $0.6530 resistance band to retarget $0.66.

XRP Daily Chart sends bullish price signals.
XRPUSD 130823 Daily Chart

4-Hourly Chart

Looking at the 4-Hourly Chart, XRP sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing sub-$0.60 and the $0.5900 – $0.5750 support band.

XRP sits below the 50-day ($0.6383) and 200-day ($0.6450) EMAs, sending bearish near and longer-term price signals. The 50-day EMA pulled back from the 200-day EMA, a bearish price signal, bringing the $0.5900 – $0.5750 support band into play. However, an XRP move through the EMAs and the 0.6417 – $0.6530 resistance band would give the bulls a run at $0.66.

The 45.37 14-4H RSI reading reflects bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI signals a return to sub-$0.60 to give the bears a run at the $0.5900 – $0.5750 support band.

XRP 4-Hourly Chart sends bearish near-term price signals.
XRPUSD 130823 4 Hourly Chart

SEC v Ripple Appeal Jitters and US Inflation Left XRP on the Back Foot

It was a quiet Saturday session. SEC plans to appeal the Court ruling on Programmatic Sales continued to test buyer appetite.

However, the talk of Judge Torres denying the SEC request to file an interlocutory appeal regarding Programmatic offers and sales to XRP buyers over trading platforms and Ripple’s other Distributions influenced.

Former attorney and co-founder of Evernode XRPL Scott Chamberlain had this to say about the SEC appeal request,

“My bet: Judge Torres denies the request. She studiously avoided new law. She found the token is not the security, accepted the SEC’s characterization of the transaction buckets to be analyzed, and simply applied Howey and its progeny to the SEC’s chosen buckets.”

Chamberlain went on to say,

“SEC failed because the undisputed facts didn’t support all the Howey prongs for two of its three chosen transaction buckets, not because Judge Torres shifted the legal goalposts on the definition of those prongs.”

In contrast, Amicus Curiae attorney John E Deaton said,

“I expect Judge Torres to grant this motion. This will then allow her to even more fully explain her reasoning and to also further make it appeal-proof. It will also allow her an opportunity to address anything Rakoff said.”

Judge Rakoff, the presiding Judge in the SEC v Terraform Labs case, caused a stir by saying that Judge Torres made a mistake in the SEC v Ripple Court ruling when declaring that XRP was not a security when sold on exchanges. Rakoff believed that there is no difference between stocks and institutional sales in terms of being a security.

Ripple Chief Legal Officer Stuart Alderoty announced that Ripple will respond to the SEC filing.

The Day Ahead

It will likely be a quiet day ahead. However, investors should continue to monitor the SEC v Ripple case-related chatter. SEC activity and US lawmaker chatter will also need consideration, while ETF, Binance, and Coinbase-related news will move the dial.

A Court ruling on the request to dismiss the SEC case against Coinbase would influence.

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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