XRP Bulls Eye a Seven Day Winning Streak on SEC v Ripple Court Filing
- On Friday, XRP extended the winning streak to six sessions, gaining 1.70% to end the day at $0.46759.
- Less hawkish Fed Chair Powell forward guidance and optimism toward the SEC v Ripple case delivered the bullish session.
- The technical indicators are bullish, signaling a return to $0.50.
On Friday, XRP rose 1.70%. Following a 2.57% gain on Thursday, XRP ended the day at $0.46759. Significantly, XRP tested resistance at $0.4750 for the first time since April.
A mixed start to the day saw XRP fall to an early low of $0.45779. Steering clear of the First Major Support Level (S1) at $0.4445, XRP rose to an early afternoon high of $0.47500. XRP briefly broke through the First Major Resistance Level (R1) at $0.4737 before easing back to end the day at $0.46759.
SEC v Ripple News and Fed Chair Powell Delivered a Bullish Session
Updates from the ongoing SEC v Ripple case drew interest on Friday.
On Friday, the SEC and defendants filed a joint letter requesting a one-week extension to file public, unredacted versions of cross-motions for summary judgment and accompanying exhibits, including the Hinman speech-related documents.
The filing was in response to the Tuesday Court ruling denying the SEC’s Motion to Seal the Hinman documents.
Defense attorney James Filan provided the updates, which included the Court granting the motion to extend to June 13, 2023.
While the filing has no implications vis-à-vis the SEC v Ripple case, the joint request for extension may have fueled hopes of a favorable settlement. The William Hinman speech-related documents remain the SEC’s Achilles heel in the case, with the prospect of making the documents public likely to raise questions from within the SEC camp.
Until now, the SEC has made at least seven attempts to shield the Hinman speech-related documents from the public.
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 quiet Saturday session for XRP and the broader crypto market. While there are no US economic indicators to influence, US debt ceiling-related news will remain the focal point. On Friday, XRP responded to Fed Chair Powell and reports of policymakers walking out on US debt ceiling talks.
XRP Price Action
At the time of writing, XRP was down 0.24% to $0.46645. A mixed start to the day saw XRP rise to an early high of $0.46850 before falling to a low of $0.46557.
Resistance & Support Levels
|R1 – $||0.4758||S1 – $||0.4586|
|R2 – $||0.4840||S2 – $||0.4496|
|R3 – $||0.5012||S3 – $||0.4324|
XRP needs to move through the $0.4668 pivot to target the First Major Resistance Level (R1) at $0.4758. A move through the Friday high of $0.47500 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 $0.4840 and resistance at $0.50. The Third Major Resistance Level (R3) sits at $0.5012.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4586 in play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.45 and the Second Major Support Level (S2) at $0.4496. The Third Major Support Level (S3) sits at $0.4324.
The EMAs and the 4-hourly candlestick chart (below) sent more bullish signals.
At the time of writing, XRP sat above the 200-day EMA, currently at $0.45356. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The EMAs delivered more bullish signals.
A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R1 ($0.4758) to target R2 ($0.4840) and $0.50. However, a fall through S1 ($0.4586) and the 200-day EMA ($0.45356) would bring S2 ($0.4496) into view. A fall through the 200-day EMA would send a bearish signal.