XRP Finds Support as Another Court Ruling Goes Against the SEC

Key Insights:

• On Tuesday, XRP rose by 0.48% to mark the second increase in five sessions.
• A choppy Tuesday session saw XRP visit sub-$0.33 on Walmart earnings news before finding support from the broader crypto market.
• The technical indicators are bearish, with XRP sitting below the 100-day EMA.

On Tuesday, XRP rose by 0.48%. Partially reversing a 6.33% slide from Monday, XRP ended the day at $0.3375.

A bearish morning saw XRP slide through the First Major Support Level at $0.3273 to an afternoon low of $0.3257.

Finding late support from the broader market, XRP rose to a high of $0.3385 before easing back. XRP fell short of the First Major Resistance Level at $0.3523.

Another Court Ruling Goes Against ahead of a New SEC Objection

It was another busy day, with news updates from the SEC v Ripple case drawing plenty of interest

Overnight, defense attorney James Filan shared the latest court ruling, saying,

“Judge Torres denies SEC’s Motion to Revoke amici status and bar John Deaton from further proceedings. Amici can’t participate in expert change now but may file application to brief concerns with SEC’s expert at summary judgment.”

Shortly after, Filan shared the SEC’s objection to the court ruling denying the SEC’s request to shield Hinman speech-related documents under the attorney-client privilege.

The ruling on the SEC objection could prove to be a turning point in the case that has been ongoing since December 2020.

The SEC is trying to shield the William Hinman speech-related documents from a 2018 speech.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was down 0.12% to $0.3371.

A mixed start to the day saw XRP rise to an early high of $0.3394 before falling to a low of $0.3368.

Technical Indicators

XRP needs to avoid the $0.3339 pivot to target the First Major Resistance Level (R1) at $0.3421.

XRP would need support from the broader market to break out from the Tuesday high of $0.3385.

In the case of an extended crypto rebound, XRP could test the Second Major Resistance Level (R2) at $0.3467 and resistance at $0.35.

The Third Major Resistance Level (R3) sits at $0.3595.

A fall through the pivot would leave the First Major Support Level (S1) at $0.3293 in play.

Barring another extended sell-off throughout the day, the Second Major Support Level (S2) at $0.3211 should limit the downside.

The Third Major Support Level sits at $0.3083.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 100-day EMA, currently at $0.3462. Today, the 50-day EMA fell through the 200-day EMA, with the 100-day EMA pulling back from the 200-day EMA, with both indicators price negatives.

A bearish cross of the 50-day EMA through the 100-day EMA would test buyers at $0.30.

However, a bullish cross of the 50-day EMA through the 200-day EMA would support an XRP move through the 100-day EMA to target $0.35.