XRP Bulls Eye a Return to $0.50 on SEC v Ripple Court Rulings

Key Insights:

• On Wednesday, XRP extended the winning streak to four sessions, gaining 1.48% to end the day at $0.44825.
• A Court ruling on the Hinman documents from the ongoing SEC v Ripple delivered a bullish session.
• The technical indicators are bullish, signaling a return to $0.50.

On Wednesday, XRP rose by 1.48%. Following a 3.37% gain on Tuesday, XRP ended the day at $0.44825. Significantly, XRP revisited the $0.46 handle for the first time in ten sessions.

A bullish start to the day saw XRP rise to an early morning high of $0.46138. XRP broke through the First Major Resistance Level (R1) at $0.4500 and the Second Major Resistance Level (R2) at $0.4583. However, the reversal saw XRP fall to an early afternoon low of $0.43765. Steering clear of the First Major Support Level (S1) at $0.4261, XRP bounced back to end the day at $0.44825.

Hinman Documents Ruling and US Debt Ceiling News Delivered Support

The Court ruling on the Hinman speech-related docs from the ongoing SEC v Ripple case delivered morning support. On Tuesday, Judge Torres denied the SEC’s Motion to Seal the Hinman documents.”

Significantly, 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.

Ripple CEO Brad Garlinghouse had this to say about the ruling,

“Another win for transparency! Unredacted Hinman emails to be publicly available soon – stay tuned as lawyers work through the mechanics to make that happen.”

While the ruling is significant, the investor reaction to the Hinman doc ruling was short-lived, with the SEC likely to appeal the decision. The SEC has made more than seven attempts to shield the William Hinman speech-related documents from public scrutiny.

However, news of progress toward a debt ceiling deal delivered support.

The Day Ahead

It is a busier Thursday session for XRP and the broader crypto market. US jobless claims, Philly Fed Manufacturing Index numbers, and Fed chatter will influence.

A fall in jobless claims and a jump in the Manufacturing Index would ease recessionary fears.

However, US debt ceiling-related news will likely remain the focal point.

Beyond the US economic calendar, investors should also monitor the news wires for SEC v Ripple updates and Binance and Coinbase (COIN)-related news.

XRP Price Action

At the time of writing, XRP was down 0.47% to $0.44613. A bearish start to the day saw XRP fall from an opening price of $0.44838 to a low of $0.44521.

XRP Technical Indicators

Resistance & Support Levels

XRP needs to move through the $0.4491 pivot to target the First Major Resistance Level (R1) at $0.4605 and the Wednesday high of $0.46138. A return to $0.4550 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 $0.4728 and resistance at $0.4750. The Third Major Resistance Level (R3) sits at $0.4966. Further Court rulings in favor of Ripple would break down the resistance levels.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4368 in play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.43 and the Second Major Support Level (S2) at $0.4254. The Third Major Support Level (S3) sits at $0.4016.

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 $0.45245. 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 the 200-day EMA ($0.45245) would support a breakout from R1 ($0.4605) to give the bulls a run at R2 ($0.4728) and $0.4750. However, a fall through the 100-day EMA ($0.44169) would bring S1 ($0.4368) and the 50-day EMA ($0.43480) into view. A fall through the 50-day EMA would send a bearish signal.