XRP Bulls Target $0.48 as Empower Oversight Takes Aim at the SEC
- On Saturday, XRP extended the winning streak to seven sessions, gaining 0.23% to end the day at $0.46866.
- Optimism toward the SEC v Ripple case and US debt ceiling news delivered support.
- The technical indicators are bullish, signaling a return to $0.50.
On Saturday, XRP rose 0.23%. Following a 1.70% gain on Friday, XRP ended the day at $0.46866. Significantly, XRP extended the winning streak to seven sessions.
A bearish start to the day saw XRP fall to an early low of $0.46238. Steering clear of the First Major Support Level (S1) at $0.4586, XRP rose to a late-session high of $0.47179. However, falling short of the First Major Resistance Level (R1) at $0.4758, XRP eased back to end the day at $0.46866.
SEC v Ripple Optimism and Debt Ceiling News Delivered a Bullish Session
There were no updates from the ongoing SEC v Ripple case to draw interest after the Friday joint filing for 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 lack of updates allowed investors to consider the road ahead, with the Hinman speech-related documents the trump card for the defense team. Last Tuesday, the Court denied the SEC’s Motion to Seal the Hinman documents, a ruling that could prove pivotal.
The William Hinman speech-related documents remain the focal point in the case, with the SEC failing to shield the speech-related documents from the public at least seven times.
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 is the Hinman connection with Simpson Thacher, a part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.
Empower Oversight Takes Another Shot at the SEC
With the SEC v Ripple case a focal point for the broader crypto market, Empower Oversight, a government watchdog, ramped up its battle against the SEC this week.
Empower Oversight filed a new Freedom of Information Act (FOIA) request with the SEC, ‘requesting communications about its referral of evidence to the Inspector General (IG), pointing to ethical violations and related litigation.‘
The request relates to the SEC’s selective targeting of XRP.
The May 16 news followed an Empower Oversight complaint against the SEC, asking the Court to force the SEC to ‘comply with a December 2022 FOIA request regarding conflicts of interest and selective enforcement by former high-level officials regarding cryptocurrencies.’
In 2021, Empower Oversight filed a lawsuit against the SEC, alleging that former SEC officials were biased against Ripple Lab and XRP. William Hinman is also a central figure in the Empower Oversight v SEC case.
The Day Ahead
It is a quiet Sunday session for XRP and the broader crypto market. While there are no US economic indicators to influence, US debt ceiling-related news will continue to draw interest.
President Joe Biden and Speaker of the House Kevin McCarthy could resume talks as early as today. Progress toward a deal would deliver XRP price support.
XRP Price Action
At the time of writing, XRP was down 0.07% to $0.46834. A mixed start to the day saw XRP fall to an early low of $0.46788 before rising to a high of $0.47031.
XRP Technical Indicators
Resistance & Support Levels
|R1 – $||0.4728||S1 – $||0.4634|
|R2 – $||0.4770||S2 – $||0.4582|
|R3 – $||0.4864||S3 – $||0.4488|
XRP needs to avoid the $0.4676 pivot to target the First Major Resistance Level (R1) at $0.4728. A move through the Saturday high of $0.47179 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 $0.4770 and resistance at $0.48. The Third Major Resistance Level (R3) sits at $0.4864.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4634 into play. However, barring a crypto event or risk-off-fueled sell-off, XRP should avoid sub-$0.46 and the Second Major Support Level (S2) at $0.4582. The Third Major Support Level (S3) sits at $0.4488.
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 $0.45448. The 50-day EMA closed in on the 200-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 200-day EMA would support a breakout from R1 ($0.4728) to target R2 ($0.4770) and $0.48. However, a fall through S1 ($0.4634) would bring S2 ($0.4582) and the 200-day EMA ($0.45448) into view. A fall through the 50-day EMA would send a bearish signal.