XRP Bulls to Target $0.55 on Hopes of a Ripple Win Against the SEC
- On Tuesday, XRP surged by 25.25% to end the day at $0.46841.
- Market reaction to the latest filing in the ongoing SEC v Ripple case delivered the breakout session.
- The technical indicators remained bullish, signaling a return to $0.50.
On Tuesday, XRP surged by 25.25%. Reversing a 3.26% loss from Monday, XRP ended the day at $0.46841. The breakout session saw XRP test resistance at $0.50 for the first time since November 2022.
A mixed start to the day saw XRP fall to a first-hour low of $0.37325 before making a move. Steering clear of the First Major Support Level (S1) at $0.3666, XRP surged to a late high of $0.49265. XRP broke through the Major Resistance Levels to test resistance at $0.50 before easing back to end the day at $0.46841.
Ripple Filing in the SEC v Ripple Case Drove Optimism of a Ripple Win
Updates from the ongoing SEC v Ripple case delivered a breakout Tuesday session. While investors await rulings on the Hinman Documents and the Summary Judgment Reply Briefs, the Ripple Defendants made a new filing in support of their fair notice defense.
The filing referenced rulings on SEC objections in the Voyager Digital Holdings bankruptcy case.
According to the latest filing, the SEC objected to Voyager’s plans to sell its assets, including VGX, to Binance.US. Additionally, the SEC objected to the involvement of Binance.US, with the SEC stating that Binance.US is an unregistered securities exchange. The filing to Judge Torres noted that the basis for Judge Wiles rejecting the SEC objections endorsed many of the arguments the Defendants have presented in the filing.
In reference to the regulatory landscape and the SEC attempts to block the sale of assets to Binance.US, the filing noted that,
“Judge Wiles found that cryptocurrency market participants operate in a regulatory environment that at best can be described as highly uncertain, in which regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC or whether they are securities that are subject to securities laws, or neither, or even on what criteria should be applied in making the decision.”
Judge Wiles went on to say,
“An uncertainty has persisted despite the fact that cryptocurrency exchanges have been around for a number of years.”
The Day Ahead
This afternoon, all eyes will be on the Fed. Following the collapse of Silicon Valley Bank and Signature Bank (SBNY), the markets are betting on a 25-basis point Fed rate hike, a post-March pause, and a mid-year rate cut.
Assuming no surprise 50-basis point Fed rate hike, the focus should be on the FOMC projections and Fed Chair Powell.
While the Fed policy decision is the main event, investors should monitor updates from the SEC v Ripple case. However, a lack of news from the SEC v Ripple case would leave regulator and lawmaker chatter to influence, along with Binance and FTX-related news.
XRP Price Action
At the time of writing, XRP was down 1.46% to $0.46157. A mixed start to the day saw XRP rise to an early high of $0.47498 before falling to a low of $0.45903.
XRP needs to avoid the $0.4448 pivot to target the First Major Resistance Level (R1) at $0.5163. A move through the Tuesday high of $0.49265 would signal a bullish session. However, the broader crypto market and SEC v Ripple chatter would need to support a breakout.
In the case of another extended rally, XRP would likely test resistance at $0.55 but fall short of the Second Major Resistance Level (R2) at $0.5642. The Third Major Resistance Level (R3) sits at $0.6836.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3969 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.39 and the Second Major Support Level (S2) at $0.3254. The Third Major Support Level (S3) sits at $0.2060.
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 $0.38994. 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 S1 ($0.3969) and the 50-day EMA ($0.38994) would support a breakout from R1 ($0.5163) to target R2 ($0.5652). However, a fall through S1 ($0.3969) and the 50-day ($0.38994) would bring the 100-day ($0.38307) and 200-day ($0.38257) EMAs into play. A fall through the 50-day EMA would send a bearish signal.