XRP Bulls Eye a Return to $0.46 to Target $0.50 on Hinman Ruling

Bob Mason
Published: May 17, 2023, 01:37 GMT+00:00

XRP was on the move this morning. The Court ruling on the Hinman speech-related docs places Ripple in a stronger position against the SEC.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Tuesday, XRP gained 3.37% to end the session at $0.44173.
  • A Court ruling from the ongoing SEC v Ripple delivered a bullish session.
  • The technical indicators turned bullish, signaling a return to $0.50.

On Tuesday, XRP rose by 3.37%. Following a 0.49% gain on Monday, XRP ended the day at $0.44173. Significantly, XRP wrapped up the day at $0.44 for the first time in nine sessions.

After a bearish morning, XRP fell to a midday low of $0.41870. XRP fell through the First Major Support Level (S1) at $0.4225. However, finding afternoon support, XRP surged to a final-hour high of $0.44267. XRP broke through the First Major Resistance Level (R1) at $0.4313 and the Second Major Resistance Level ($0.4352) to end the day at $0.44173.

Court Ruling on the Hinman Documents Delivered a Breakout Session

It was a busier Tuesday session for the XRP community, with news from the ongoing SEC v Ripple case delivering a late rally.

Overnight, defense attorney James Filan shared the latest from the SEC v Ripple case, saying,

“Judge Torres denies the SEC’s Motion to Seal the Hinman documents.”

According to the Court filing,

“The Hinman Speech Documents ‘would reasonably have the tendency to influence rulings on a motion.’ The Court also rejects the SEC’s argument that sealing is necessary to preserve ‘openness and candor’ within the SEC.”

The Court also rejected the SEC’s argument that the Court should seal the docs because the SEC may argue the documents are privileged in the future.

By way of background, William Hinman remains a central figure in the SEC v Ripple case. In a famous 2018 speech, 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 relates to Hinman’s connection with Simpson Thacher. Simpson Thacher is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

SEC attempts to shield the documents from the public under the attorney-client privilege previously failed, with the Courts forcing the SEC to hand the documents to the Defendants. The content of the speech-related documents could influence the outcome of the case, with the SEC eager to keep the documents from reaching the public domain.

In February, Ripple CEO Brad Garlinghouse had this to say about the Hinman docs,

“When those come to light, I think you will see more kind of like, how is it possible for the SEC to decide to bring a case against Ripple given what they were saying within their own walls.”

The Day Ahead

It is a quieter Wednesday session for XRP and the broader crypto market. There were no US economic indicators for investors to consider. However, US debt ceiling-related news will move the dial.

While the US debt ceiling remains a focal point, the Court ruling on the Hinman speech-related documents will likely resonate. Significantly, the SEC may prefer to settle to prevent the Hinman documents from reaching the public arena.

Investors should also monitor SEC activity and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was up 1.19% to $0.44700. A mixed start to the day saw XRP fall to an early low of $0.44009 before rising to a high of $0.44881.

XRP makes a move.
XRPUSD 170523 Daily Chart

XRP Technical Indicators

Resistance & Support Levels

R1 – $ 0.4500 S1 – $ 0.4261
R2 – $ 0.4583 S2 – $ 0.4104
R3 – $ 0.4823 S3 – $ 0.3864

XRP needs to avoid the $0.4344 pivot to retarget the First Major Resistance Level (R1) at $0.4500. A move through the morning high of $0.44881 would signal a bullish session. However, SEC v Ripple updates and US debt ceiling-related news must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4583 and resistance at $0.46. The Third Major Resistance Level (R3) sits at $0.4823. Further Court rulings in favor of Ripple would break down the resistance levels.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4261 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.42 and the Second Major Support Level (S2) at $0.4104. The Third Major Support Level (S3) sits at $0.3864.

XRP resistance levels in play above the pivot.
XRPUSD 170523 Hourly Chart

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.45271. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered more bullish signals.

A move through R1 ($0.4500) and 200-day EMA ($0.45281) would give the bulls a run at R2 ($0.4583) and $0.46. However, a fall through the 100-day EMA ($0.44086) would bring the 50-day EMA ($0.43119) and S1 ($0.4261) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs turned bullish.
XRPUSD 170523 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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