XRP Bulls to Target $0.45 on Today’s Summary Judgement Reply Briefs

Key Insights:

• On Tuesday, XRP rose by 2.36%, marking the seventh gain in nine sessions.
• Bullish sentiment from the Asian session delivered support, with investors betting on China easing lockdown measures.
• The technical indicators turned bullish, with XRP sitting below the 200-day EMA, signaling a possible return to sub-$0.45.

On Tuesday, XRP rose by 2.36%. Reversing a 1.91% loss from Monday, XRP ended the day at $0.39817. Notably, XRP ended the day at sub-$0.40 for the fourth consecutive session.

A mixed start to the day saw XRP fall to an early low of $0.38303. Steering clear of the First Major Support Level (S1) at $0.3752, XRP rallied to a late high of $0.40366. XRP broke through the First Major Resistance Level (R1) at $0.4006 before easing back to end the day at sub-$0.40.

Bets on Easing Lockdown Measures in China Delivered XRP Price Support

On Tuesday, market sentiment towards China’s zero-COVID policy took a sharp turn. Following countrywide protests on Monday, the markets bet on the Chinese government easing lockdown measures to support the economy.

The Hang Seng Index and the CSI300 reflected the shift in mood, rallying by 5.24% and 3.09%, respectively.

However, there were no updates from the ongoing SEC v Ripple case to influence ahead of today’s filings.

Today, the SEC and defendants must file summary judgment reply briefs. The public can access redacted versions on December 5. The reply briefs are significant as Ripple could use the filing to corner the SEC into a settlement.

William Hinman’s speech-related documents and the Amicus Briefs will likely be areas of interest. While the defendants have the documents in their possession, the SEC will want to prevent the public from accessing the Hinman documents.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

By way of history, the SEC failed to shield the Hinman speech-related documents on more than six occasions.

XRP Price Action

At the time of writing, XRP was up 0.95% to $0.40195. A bullish start to the day saw XRP rally from an early low of $0.39652 to a high of $0.40942 before easing back.

XRP broke through the First Major Resistance Level (R1) at $0.4069 before falling back to sub-$0.40200 levels.

Technical Indicators

XRP needs to avoid the $0.3950 pivot to retarget the First Major Resistance Level (R1) at $0.4069 and the morning high of $0.40842. A return to $0.4050 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 $0.4156. The Third Major Resistance Level (R3) sits at $0.4362.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3862 into play. Barring an extended sell-off, XRP should avoid sub-$0.3800 and the Second Major Support Level (S2) at $0.3743. The Third Major Support Level (S3) sits at $0.3537.

XRP movement today will likely hinge on updates from the SEC v Ripple case.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.40432. The 50-day EMA converged on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.

A bullish cross of the 50-day EMA through the 100-day EMA would support a breakout from R1 ($0.4069) to target R2 ($0.4156). However, a fall through the 100-day ($0.39154) and the 50-day ($0.39049) EMAs would bring S1 ($0.3862) into view.