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XRP Bulls to Target $0.41 on SEC v Ripple Optimism and FTX News

By:
Bob Mason
Published: Jan 20, 2023, 02:47 GMT+00:00

This week, Brad Garlinghouse comments relating to the Hinman docs and talk of an FTX reboot have delivered XRP support as the bulls eye a path to $0.45.

XRP Tech Analysis - FX Empire

Key Insights:

  • On Thursday, XRP led the top ten rebound, rallying by 3.82% to end the day at $0.39306.
  • Market sentiment towards the SEC v Ripple case and news of a possible FTX reboot supported a breakout session.
  • The technical indicators remain bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.

On Thursday, XRP rallied by 3.82%. Reversing a 2.23% slide from Wednesday, XRP ended the day at $0.39306. Despite the bullish session, XRP fell short of $0.40 for the third consecutive day.

A mixed start to the day saw XRP fall to an early low of $0.37658. Steering clear of the First Major Support Level (S1) at $0.3641, XRP rallied to a late afternoon high of $0.39630. XRP broke through the First Major Resistance Level (R1) at $0.3945 before easing back to end the day at $0.39306.

SEC v Ripple and FTX News Delivers an XRP Rebound

It was a quiet Thursday session, with no Court filings in the ongoing SEC v Ripple case for investors to consider.

While there were no updates, Ripple CEO Brad Garlinghouse provided a view on the all-important William Hinman speech-related documents.

Talking from Davos, Garlinghouse discussed the importance of the William Hinman speech-related documents, saying,

“When those come to light, I think you will see more kind of like, how is it possible for the SEC to decide to bring a case against Ripple given what they were saying within their own walls.”

Garlinghouse also pointed out that the SEC did not state that XRP would be a security in three separate meetings before later turning around and labeling XRP as a security.

The references to the Hinman speech-related documents emphasized the importance of the documents to both parties. Investors are awaiting several pivotal Court rulings, including the decision on the Hinman speech-related documents.

Having failed to shield the documents under the attorney-client privilege, SEC filed motions to redact content from the speech-related documents. A ruling against the SEC could force the SEC down the settlement road.

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.

While sentiment toward the SEC v Ripple case was positive, FTX news delivered the breakout session. Reports of a possible FTX reboot supported a broad-based crypto rally.

Today, investors should continue monitoring the crypto news wires for updates on FTX and rulings from the SEC v Ripple case.

XRP Price Action

At the time of writing, XRP was down 0.46% to $0.39127. A bearish start to the day saw XRP fall from an early high of $0.39293 to a low of $0.38913.

XRP sees early red.
XRPUSD 200123 Daily Chart

Technical Indicators

XRP needs to avoid a fall through the $0.3886 pivot to target the First Major Resistance Level (R1) at $0.4007. A move through the Thursday high of $0.39630 would signal a bullish session. However, the broader crypto market or SEC v Ripple updates would need to support a breakout.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4084 and resistance at $0.41. The Third Major Resistance Level (R3) sits at $0.4281.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3810 into play. However, barring another extended sell-off, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3689. The Third Major Support Level (S3) sits at $0.3492.

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

XRP resistance levels in play above the pivot.
XRPUSD 200123 Hourly Chart

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

At the time of writing, XRP sat below the 50-day EMA, currently at $0.38201. The 50-day EMA moved away from the 200-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were bullish.

A hold above the 50-day EMA ($0.38201) would support a breakout from R1 ($0.4007) to target R2 ($0.4084) and $0.41. However, a fall through the 50-day EMA ($0.38201) would bring S1 ($0.3810) and the 100-day EMA ($0.37287) into view. A pullback from the 50-day EMA would be a bearish signal.

EMAs are bullish.
XRPUSD 200123 4 Hourly Chart

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.

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