XRP Bulls Target $0.53 on US Lawmaker Scrutiny of SEC Activities

Key Insights:

• On Thursday, XRP found support from the broader market, ending the day up 1.65% to $0.51329.
• SEC v Ripple case chatter and US economic indicators supported a bullish session.
• The technical indicators are bullish, signaling a return to $0.55.

On Thursday, XRP rose by 1.65%. Partially reversing a 2.44% loss from Wednesday, XRP ended the day at $0.51329. The bullish session supported an XRP hold onto the $0.51 handle for the third time in four sessions.

A bearish start to the day saw XRP fall to an early low of $0.50175. Steering clear of the First Major Support Level (S1) at $0.4961, XRP rose to a late evening high of $0.51603. However, coming up against the First Major Resistance Level (R1) at $0.5159, XPP eased back to end the day at $0.51329.

US Economic Indicators and SEC v Ripple Chatter Deliver Support

On Thursday, investors moved on from the latest SEC filing in the ongoing SEC v Ripple that weighed on investor sentiment mid-week.

While there were no updates from the case, SEC Chair Gary Gensler and the SEC were in the spotlight. House Financial Services Chairman Patrick McHenry sent SEC Chair Gary Gensler a letter on Wednesday requesting the provision of complete documents relating to the SEC charges against former FTX CEO Sam Bankman-Fried.

The letter warned Gensler,

“Failure to produce the requested information could result in the Committee considering using compulsory process, if necessary, to obtain the information.”

Ripple Chief Legal Officer Stuart Alderoty shared his view on the letter, saying,

“Sounds familiar. It only took us… 18 months and 6 court orders to get docs from the SEC.”

Alderoty may be referring to the attempts made to obtain the William Hinman speech-related documents, which remain central to the SEC v Ripple case.

While Alderoty’s frustration may have drawn interest, US economic indicators supported a bullish afternoon session. An unexpected fall in the US producer price index and a larger-than-expected increase in US initial jobless claims suggested the Fed may be nearing the end of its monetary policy tightening cycle.

However, XRP trailed the broader crypto market, with the lack of Court filings and the latest SEC filing limiting gains on Thursday.

The Day Ahead

SEC v Ripple case-related news will remain the focal point. Investors should track the crypto news wires and Twitter for a Ripple response to the SEC filing.

However, a lack of SEC v Ripple case-related news will leave regulatory activity in the spotlight. IMF/World Bank Spring Meetings news updates and Binance and Coinbase (COIN) commentary will also move the dial.

While Gary Gensler will have his hands full to meet the requests of the House Financial Services Chair, Gensler will need to prepare for a digital assets sub-committee hearing on Capitol Hill on April 18.

House Financial Services Chair McHenry called on the SEC chair to attend a sub-committee hearing to address questions relating to its regulation by enforcement. SBF and the Ripple case will likely be hot topics.

Away from the crypto market, US economic indicators and sentiment toward Fed monetary policy will influence the afternoon session. US retail sales, industrial production, and consumer sentiment will be in view. We expect the retail sales and consumer sentiment figures to garner more interest.

XRP Price Action

At the time of writing, XRP was down 0.17% to $0.51240. A mixed morning saw XRP rise to an early high of $0.51256 before falling into the red.

Technical Indicators

XRP needs to avoid the $0.5104 pivot to target the First Major Resistance Level (R1) at $0.5190. A move through the Thursday high of $0.51603 would signal a bullish session. However, 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 $0.5246 and resistance at $0.53. The Third Major Resistance Level (R3) sits at $0.5389.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5047 into play. However, barring an extended sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4961. The Third Major Support Level (S3) sits at $0.4818.

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

At the time of writing, XRP sat above the 50-day EMA, currently at $0.50867. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.50867) would support a breakout from R1 ($0.5190) to target R2 ($0.5246) and $0.53. However, a fall through the 50-day EMA ($0.50867) would bring S1 ($0.5047) and the 100-day EMA ($0.49607) into view. A fall through the 50-day EMA would send a bearish signal.