XRP Bulls Raise Price Target to $0.45 on the Hope of an SEC Settlement
- On Thursday, XRP extended its winning streak to four sessions.
- Investor hopes of a favorable conclusion to the SEC v Ripple case supported an XRP return to $0.40.
- The technical indicators are turning bullish, with XRP sitting above the 100-day EMA, signaling a possible return to sub-$0.45.
On Thursday, XRP rallied by 5.38%. Following a 1.71% gain from Wednesday, XRP ended the day at $0.40212. Notably, XRP extended its winning streak to four sessions and wrapped up the day at $0.40 for the first time since November 8.
A bearish start to the day saw XRP fall to a late morning low of $0.37400. Steering clear of the First Major Support Level (S1) at $0.3722, XRP rallied to a late high of $0.40475. XRP broke through the day’s Major Resistance Levels before a late pullback through the Third Major Resistance Level (R3) to end the day at $0.40212.
While there were no updates from the ongoing SEC v Ripple case to influence, the next Court date of November 30 is approaching.
Investor Hopes of a Favorable Outcome to the SEC v Ripple Case Delivers
XRP investor hopes for a favorable outcome to the SEC v Ripple case delivered price support on Thursday.
On November 30, parties must file summary judgment reply briefs under temporary seal. The public will have access to redacted versions on December 5.
The William Hinman speech-related documents remain central to Ripple’s case. Investors will want to see if and how the Defendants reference the Hinman documents in the reply brief.
With the SEC having made numerous attempts to shield the documents under the attorney-client privilege, suggestions of the documents reaching the public domain could force the SEC to reconsider its position in the case and look for a settlement.
The other question that investors need to consider is how much weight the Court will give to the Amicus Briefs. Several Amicus Briefs provide compelling arguments, including Spend The Bits (STB), which clearly articulates how XRP fails the second and third factors of the Howey Test.
Overnight, XRP Investor counsel John E Deaton referenced the STB Amicus Brief, saying,
“If you want to truly appreciate the absurdity of the SEC v Ripple case and how the case is hurting innovation, you should read STB Amicus Brief.”
It is worth noting that neither the SEC nor the defendants will prewarn the markets of a settlement. With this knowledge, investors have taken more bullish positions ahead of the November 30 filings.
XRP Price Action
At the time of writing, XRP was down 2.04% to $0.39390. A bearish start to the day saw XRP fall from an early high of $0.40095 to a low of $0.38894.
XRP needs to avoid the $0.3936 pivot to target the First Major Resistance Level (R1) at $0.4132. A return to the Thursday high of $0.40475 would signal a breakout session.
In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4244. The Third Major Resistance Level (R3) sits at $0.4551.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3825 into play. Barring an extended sell-off, XRP should avoid sub-$0.38 and the Second Major Support Level (S2) at $0.3629. The Third Major Support Level (S3) sits at $0.3321.
However, negative FTX contagion news could send XRP back to the Thursday low of $0.37400.
The EMAs and the 4-hourly candlestick chart (below) sent a more bullish signal.
At the time of writing, XRP sat above the 100-day EMA, currently at $0.38749. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.
A hold above the 100-day EMA ($0.38749) would support a breakout from the 200-day EMA ($0.40709) to bring R1 ($0.4132) into play. However, a fall through the 100-day EMA ($0.38749) would give the bears a run at S1 ($0.3835) and the 50-day EMA ($0.37818).