XRP Bulls Eye a Return to $0.4350 on Upbeat SEC v Ripple Sentiment

Key Insights:

• On Friday, XRP extended its winning streak to five sessions.
• As November 30 approaches, investor hopes of a settlement in the SEC v Ripple case delivered further support.
• The technical indicators are turning more bullish, with XRP sitting at the 200-day EMA, signaling a possible return to sub-$0.45.

On Friday, XRP rose by 1.46%. Following a 5.38% rally from Thursday, XRP ended the day at $0.40798. Notably, XRP extended its winning streak to five sessions and wrapped up the day at $0.40 for the second time since November 8.

A bearish start to the day saw XRP fall to an early morning low of $0.38894. Steering clear of the First Major Support Level (S1) at $0.3825, XRP rallied to a late morning high of $0.41838. XRP broke through the First Major Resistance Level (R1) at $0.4121 before sliding back to sub-$0.40.

However, finding late support, XRP returned to $0.40 to wrap up the day in positive territory. XRP continued to outperform its top ten peers on Friday. While XRP was up 13.2% (Mon-Fri), BTC was up just 1.48%, and the crypto market cap by 3.25%.

There were no updates from the ongoing SEC v Ripple case to influence as the next Court date of November 30 approaches.

SEC v Ripple Sentiment Delivers Further XRP Price Support

On Friday, XRP bucked the broader market trend. While there were no updates from the SEC v Ripple case, investor sentiment toward the prospects of a settlement continued to deliver price support.

Mindful that there are unlikely to be any material Court updates until November 30, expectations are that the SEC will need to settle. The William Hinman speech-related documents sit in the hands of the defendants. With the SEC wanting to shield the content from the public, plans to use the content in Court could make the SEC nervous.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Following failed attempts to shield the speech-related documents under the attorney-client privilege, the Court ordered the SEC to hand the documents over to the defendants in late October.

All of this makes the November 30 summary judgment reply brief filings all the more influential. The market consensus is that if Ripple plans to use the documents in Court, then the SEC may agree to settle.

The public will have access to redacted versions of the summary judgment reply briefs on December 5.

For XRP holders and the defendants, the Amicus Brief filings are another consideration. However, it will boil down to how much weight the Court gives the filings should the SEC allow the case to progress to Court.

XRP Price Action

At the time of writing, XRP was down 0.48% to $0.40601. A mixed start to the day saw XRP rise to an early high of $0.40850 before falling to a low of $0.40352.

Technical Indicators

XRP needs to avoid the $0.4051 pivot to target the First Major Resistance Level (R1) at $0.4213. A return to the Friday high of $0.41838 would signal another breakout session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4345 and $0.45. The Third Major Resistance Level (R3) sits at $0.4640.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3918 into play. Barring an extended sell-off, XRP should avoid sub-$0.3850 and the Second Major Support Level (S2) at $0.3757. The Third Major Support Level (S3) sits at $0.3462.

Unexpected updates on the SEC v Ripple case and from FTX debtors will need consideration, however.

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

At the time of writing, XRP sat at the 200-day EMA, currently at $0.40709. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A breakout from the 200-day EMA ($0.40709) would support a move through R1 ($0.4213) to bring R2 ($0.4345) into play. However, a fall through S1 ($0.3918) would give the bears a run at the 100-day EMA ($0.38969) and the 50-day EMA ($0.38430).