XRP Finds Saturday Support Ahead of Court Ruling on Hinman Documents

Key Insights:

• On Friday, XRP slid by 4.65% to end the day at $0.3811. Market reaction to US inflation figures weighed.
• This morning, however, XRP found early support, with investors now awaiting the Court ruling on the Hinman speech-related documents.
• Key technical indicators remain bearish. XRP sits below the 50-day EMA.

On Friday, XRP slid by 4.65%. Following a 0.10% decline on Thursday, XRP ended the day at $0.3811. News updates from the ongoing SEC v Ripple case took a backseat, with investors responding to US inflation figures for May.

A bullish start saw XRP strike a day high of $0.4112 before hitting reverse.

XRP broke through the First Major Resistance Level at $0.4033 and the Second Major Resistance Level at $0.4070.

Market reaction to US inflation figures, however, led XRP to a day low of $0.3761.

The extended sell-off saw XRP fall through the day’s Major Support Levels to visit sub-$0.38 for the first time in June.

Market angst over inflation had tested support ahead of Friday’s US inflation numbers, overshadowing news updates from the ongoing SEC v Ripple case.

Going into the weekend, some minor court filings provided little distraction. Things could prove to be materially different next week, however.

Investors now Await Court Ruling on the Hinman Speech-Related Documents

Last Tuesday, the SEC and Ripple attended a court-scheduled conference. The subject matter was the SEC’s position on William Hinman’s 2018 speech-related documents.

The conference leaned in favor of the defense, with Judge Sarah Netburn grilling the SEC’s shifts in position vis-à-vis William Hinman’s famous speech. In 2018, the former SEC Director of the Division of Corporation Finance stated that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Since August 2021, the SEC has filed at least six motions, claiming that Hinman’s speech falls under the attorney-client privilege. At one point, the SEC had taken the view that Hinman’s comments were his own.

The consensus is that the speech-related documents contain material damaging to the SEC case. A ruling in favor of Ripple could expedite a settlement and drive XRP back towards $1.00.

XRP Price Action

At the time of writing, XRP was up 0.34% to $0.3824.

A bullish start to the day saw XRP rise to a morning high of $0.3881 before sliding to a low of $0.3797.

XRP left the Major Support and Resistance Levels untested through the morning session.

Technical Indicators

XRP will need to move through the $0.3895 pivot to target the First Major Resistance Level at $0.4028. XRP would need the broader crypto market support to return to $0.40 levels.

In a broad-based crypto rally, XRP should test the Second Major Resistance Level at $0.4246 and resistance at $0.4250. The Third Major Resistance Level sits at $0.4597.

Failure to move through the pivot would bring the First Major Support Level at $0.3677 in play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.36. The Second Major Support Level sits at $0.3544.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.3959. Today, the 50-day EMA fell back from the 100-day EMA. The 100-day EMA eased back from the 200-day EMA, XRP price negative.

A move through the 100-day EMA to $0.4041 would support a run at the 200-day EMA and $0.45. In the coming week, news updates from the SEC v Ripple case, the Fed monetary policy decision and Fed forward guidance will be the key drivers.