XRP Bulls Eye Return $0.4150 to Target $0.43 on SEC v Ripple Optimism

Key Insights:

• On Sunday, XRP saw red for a second consecutive day, falling by 0.59% to end the day at $0.40076.
• XRP bucked the broader market trend but avoided another heavy loss as investors go into wait-and-see mode.
• However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.

On Sunday, XRP fell by 0.59%. Following a 2.46% loss on Sunday, XRP ended the week up by 4.14% to $0.40076. XRP visited $0.41 for the third consecutive session.

Tracking the broader crypto market, XRP rose to a late afternoon high of $0.41198. Coming up short of the First Major Resistance Level (R1) at $0.4140, XRP slid to a late low of $0.3968. However, steering clear of the First Major Support Level (S1) at $0.3947, XRP partially reversed the losses to end the day at $0.40076.

SEC v Ripple Wait-And-See Mode Left XRP on the Backfoot

It was a quiet Sunday session, with no updates from the ongoing SEC v Ripple case for investors to consider. With the case now resting in the hands of Judge Torres, investors face a period of uncertainty that could extend to the end of March.

Between now and any Court rulings, we expect plenty of conjecture that will draw the interest of investors. However, investors remain optimistic about a favorable outcome, supporting current price levels.

On Sunday, Amicus Curiae attorney John Deaton was in the news, saying that if XRP is a security, then the SEC’s case against Ripple would not be ongoing for two years, and the SEC would not be facing a fair notice defense.

Talking about the broader crypto market, Deaton also said,

“Other than the SEC lawsuit v XRP, what has changed since Sygnum recommended BTC, ETH, and XRP? I still believe all three will be standing five years from now. The question is, what other tokens will be? Brad Garlinghouse said 99% are likely going to zero. What’s standing in 2028?”

John Deaton joins Brad Garlinghouse and the broader community in expecting a favorable outcome to the case.

Today, SEC v Ripple chatter will continue to draw interest. However, barring an unexpected Court ruling, XRP will likely track the broader crypto market throughout the day.

XRP Price Action

At the time of writing, XRP was up 1.84% to $0.40812. A mixed start to the day saw XRP fall to an early low of $0.40020 before rising to a high of $0.41233.

XRP briefly broke through the First Major Resistance Level (R1) at $0.4096.

Technical Indicators

XRP needs to avoid a fall through the $0.4032 pivot to retarget the First Major Resistance Level (R1) at $0.4096 and the morning high of $0.41233. A return to $0.41 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4184 and resistance at $0.42. The Third Major Resistance Level (R3) sits at $0.4335.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3944 into play. However, barring another extended sell-off, XRP should avoid sub-$0.39 and the Second Major Support Level (S2) at $0.3880. The Third Major Support Level (S3) sits at $0.3728.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.39358. The 50-day EMA pulled further away from the 200-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

A hold above S1 ($0.3944) and the 50-day EMA ($0.39358) would support a breakout from R1 ($0.4096) to target R2 ($0.4184) and $0.42. However, a fall through S1 ($0.3944) and the 50-day EMA ($0.39358) would bring S2 ($0.3880) and the 100-day EMA ($0.38238) into view. A pullback from the 50-day EMA would be a bearish signal.