XRP Bulls Target $0.50 on Increased SEC Chair Gensler Scrutiny

Bob Mason
Published: Jul 2, 2023, 04:45 GMT+00:00

After a mixed Saturday, XRP was in breakout mode this morning. While there were no immediately apparent reasons, US lawmakers likely contributed.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • On Saturday, XRP joined the broader market in positive territory, gaining 0.13% to end the day at $0.4736.
  • SEC v Ripple chatter sent mixed signals before a breakout Sunday morning session.
  • The technical indicators turned bullish this morning, signaling a return to $0.50.

On Saturday, XRP rose by 0.13%. Partially reversing a 0.38% loss from Friday, XRP ended the day at $0.4736. Significantly, XRP fell short of the $0.48 handle for the second time in three sessions.

A bearish start to the day saw XRP fall to an early low of $0.4647. Steering clear of the First Major Support Level (S1) at $0.4543, XRP rose to an early afternoon high of $0.4758. However, falling short of the First Major Resistance Level (R1) at $0.4872, XRP eased back to end the day at $0.4736.

SEC v Ripple Chatter Put the SEC War Against Crypto in the Spotlight

It was a quiet Saturday session, with no Court rulings from the ongoing SEC v Ripple case to draw interest. The lack of case-related activity left the crypto news wires to influence investor appetite.

Amicus Curiae attorney John Deaton was back in the news on Saturday. Responding to a Wolf of All Streets tweet relating to the newly launched EDX Markets, Deaton had this to say,

“Judge Torres’ decision gets potentially more significant as each day passes. If it’s bad for XRP (notice I said XRP and not Ripple), then status quo with more political momentum to Gensler, Warren, Brad Sherman’s anti-crypto campaign. But if it’s great for XRP, then great news for other tokens.”

While the outcome of the SEC v Ripple case has far-reaching ramifications, investors remain cautious. The news of Citigroup (C) reviewing its custody partnership with Metaco was another example of Wall Street’s anti-crypto stance that SEC Chair Gensler and the US administration support.

However, Financial Services Committee Chair Patrick McHenry provided support on Saturday. Referencing the SEC’s comments relating to the recent BTC ETF filings, Chairman McHenry had this to say,

“If these reports are accurate, Gary Gensler has a lot of explaining to do. An ETF would provide everyday investors with an SEC-regulated product. The only reason for Chair Gensler to oppose is if he wants to kill crypto in the US altogether.”

US lawmakers have put the SEC Chair back in focus. This week, The Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), the Chairman of the House Judiciary Committee, Jim Jordan (OH-04), and the Chairman of the House Oversight and Accountability Committee, James Comer (KY-01), sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler.

The Chairmen identify significant concerns with Chair Gensler’s potential failure to comply with federal record keeping laws while slamming Gensler’s inadequate response to a previous inquiry regarding the matter.

The Day Ahead

It is a quiet Sunday session, with US investors preparing for the Fourth of July holidays. The lack of US economic indicators will leave the crypto wires to continue to move the dial.

While the SEC v Ripple case will remain the focal point, investors should monitor SEC and US lawmaker chatter. SEC v Binance and Coinbase (COIN)-related news would also move the dial.

XRP Price Action

At the time of writing, XRP was up 4.39% to $0.4944. A bullish start to the day saw XRP rally from an early low of $0.4701 to a high of $0.4946. XRP broke through the Major Resistance Levels.

There was no immediately apparent reason for the early breakout. However, increased scrutiny of the SEC Chair and the SEC’s actions likely contributed.

XRP makes an early move.
XRPUSD 020723 Daily Chart

Technical Indicators

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

At the time of writing, XRP sat above the 200-day EMA, currently at $0.4870. The 50-day EMA narrowed to the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 200-day ($0.4870) and 100-day ($0.4848) EMAs would support a run at $0.50. However, a fall through the 200-day ($0.4870) and 100-day ($0.4848) EMAs would bring the 50-day EMA ($0.4792) into view. A fall through the 50-day EMA would send bearish signals and give the bears a run at the First Major Support Level (S1) at $0.4696.

EMAs are turning bullish.
XRPUSD 020723 4 Hourly Chart

Resistance & Support Levels

R1 – $ 0.4780 S1 – $ 0.4669
R2 – $ 0.4825 S2 – $ 0.4603
R3 – $ 0.4936 S3 – $ 0.4492


About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

Did you find this article useful?