XRP Bulls Eye $0.355 to Target $0.37 on SEC v Ripple Optimism

Key Insights:

• On Monday, XRP rallied by 2.76% to end the day at $0.34786.
• A choppy session saw the monthly XRP release from escrow sink XRP to $0.30098 before recovering.
• The technical indicators are bearish, with XRP sitting below the 50-day EMA, signaling a return to sub-$0.33.

On Monday, XRP rallied by 2.76%. Following a 0.01% loss from Sunday, XRP ended the day at $0.34786. Significantly, XRP tested buyers at $0.30 for the first time since June.

A bearish start to the day saw XRP slide to an early morning low of $0.30098. XRP fell through the Major Support Levels before rising to a late high of $0.35500. XRP broke through the Major Resistance Levels to end the day at $0.34786. Despite a return to sub-$0.35, XRP avoided a fall through the Third Major Resistance Level (R3) at $0.3469.

There were no material updates from the ongoing SEC v Ripple case to move the dial.

Investor Sentiment Toward the SEC v Ripple Case Turned Bullish

The lack of material updates from the SEC v Ripple case left investors to juggle the possible outcomes. Investor optimism has continued to provide support, though a high degree of uncertainty has left $0.40 out of reach.

On Monday, the session was choppier than usual. There was no single crypto market event to send XRP tumbling in the early hours. The pullback was against the broader market trend, raising more questions. The monthly release of one billion XRP on Sunday coincided with Whale Alert highlighting unusual movements that sent XRP briefly crashing.

The downside was short-lived, however. XRP found support from the broader market to end the day in positive territory.

While Whale Alerts tend to have a price impact, the SEC v Ripple case remains the focal point. Entering the New Year, the debate continued about whether the SEC will settle. However, the answer to the question may be in the hands of the Court and the latest SEC attempt to shield the content of the William Hinman speech-related documents.

One pivotal ruling relates to the William Hinman speech-related documents. The SEC is attempting to shield selected content from the public. Following more than six failed attempts at preventing the documents from becoming public, the latest move could be a last-ditch effort before considering a settlement.

As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Today, investors should continue to monitor updates from the SEC v Ripple case. A lack of updates will leave XRP will continue to tests investors. While optimism has delivered support, investors remain wary, which has capped the upside.

XRP Price Action

At the time of writing, XRP was down 1.27% to $0.34343. A bearish start to the day saw XRP fall from an early high of $0.34829 to a low of $0.34343.

Technical Indicators

XRP needs to avoid the $0.3346 pivot to target the First Major Resistance Level (R1) at $0.3682. A move through the Monday high of $0.35500 would signal a bullish session.

In the case of an extended rally, XRP would likely test resistance at $0.37 but fall short of the Second Major Resistance Level (R2) at $0.3886. The Third Major Resistance Level (R3) sits at $0.4427.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3142 into play. However, barring an extended sell-off, XRP should avoid sub-$0.30 and the Second Major Support Level (S2) at $0.2806. The Third Major Support Level (S3) sits at $0.2266.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.34589. The 50-day EMA slipped back from the 100-day EMA, with the 100-day EMA easing back from the 200-day EMA. The signals were bearish.

A move through the 50-day ($0.34589) and 100-day (0.35169) EMAs would give the bulls a run at the 200-day EMA ($0.36353) and R1 ($0.3682). However, failure to move through the 50-day EMA ($0.34589) would leave XRP under pressure.