XRP Bulls Look for a Path to $0.40 on Pending SEC v Ripple Rulings

Key Insights:

• On Wednesday, XRP led the crypto top ten, rising by 6.33% to end the day at $0.37291.
• Risk-on sentiment and updates from the SEC v Ripple case delivered an XRP return to $0.37.
• The technical indicators are bullish, with XRP sitting above the 200-day EMA, signaling a return to $0.40.

On Wednesday, XRP rallied by 6.33%. Following a 0.46% gain on Tuesday, XRP ended the day at $0.37291. Significantly, XRP ended the day at $0.37 for the first time since December 15 and extended the winning streak to four sessions.

A bearish start to the day saw XRP fall to an early low of $0.34800. Steering clear of the First Major Support Level (S1) at $0.3443, XRP rallied to a late high of $0.37834. XRP broke through the Major Resistance Levels before a brief fall through R3 ($0.3718) to sub-$0.37. However, a bullish end to the session saw XRP break back through R3 to end the day at $0.37291.

Investor Sentiment Toward the SEC v Ripple Case Delivers $0.37

There were no updates from the ongoing SEC v Ripple case to influence, leaving investors to digest the latest Court Filings.

On Monday, the parties filed oppositions to Omnibus Motions to seal. Notably, the Defendants continued to focus on the William Hinman speech-related documents, leaving the hope of a settlement on the table.

The William Hinman speech-related documents remain central to the case, with the SEC unwavering in its bid to shield the content from the public arena.

As background, 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 related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Investors await a ruling on the William Hinman speech-related document redactions and the Summary Judgment Reply briefs. While the Court decisions could come at any time, two Court dates remain.

On January 13, the parties must file the Daubert Motions, and all parties and non-parties must file oppositions to the non-party Motions to seal on January 18, previously due on January 4.

While the filings will draw interest, the rulings on the Hinman speech-related redactions and the Summary Judgment Reply brief could prove pivotal. A ruling against the SEC on protecting content within the Hinman speech-related documents may lead to a settlement.

Today, while the broader crypto market will provide direction, investors should monitor SEC v Ripple case updates, which could materially affect the outcome. However, a lack of SEC v Ripple news would leave XRP in the hands of the broader crypto market.

The US CPI Report and initial jobless claims will draw interest later today. A hotter-than-expected CPI Report and a fall in initial jobless claims to sub-200k would test buyer appetite.

XRP Price Action

At the time of writing, XRP was down 0.08% to $0.37263. A mixed start to the day saw XRP rise to an early high of $0.37568 before falling to a low of $0.37045.

Technical Indicators

XRP needs to avoid the $0.3664 pivot to target the First Major Resistance Level (R1) at $0.3848. A move through the Wednesday high of $0.37834 would signal a bullish session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.3968 and resistance at $0.40. The Third Major Resistance Level (R3) sits at $0.4271.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3545 into play. However, barring an extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3361. The Third Major Support Level (S3) sits at $0.3057.

Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.

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

At the time of writing, XRP sat above the 200-day EMA, currently at $0.35731. The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

Avoiding the 200-day EMA ($0.35731) would support a breakout from R1 ($0.3848) to give the bulls a run at R2 ($0.3968) and $0.40. However, a fall through the 200-day EMA ($0.35731) would bring S1 ($0.3545) and the 50-day ($0.35109) into view. A fall through the 50-day EMA would be a bearish signal.