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XRP in for a Choppy Session as Hinman Doc Countdown Begins

By:
Bob Mason
Published: Jun 10, 2023, 03:20 GMT+00:00

After a bullish Friday, XRP is under pressure this morning. Investors will likely consider the possible impact of the SEC moves on the SEC v Ripple case.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Friday, XRP bucked the broader market trend, rising 2.67% to end the day at $0.53812.
  • Investor sentiment toward the SEC v Ripple case and the platform’s progress beyond the US borders provided support.
  • The technical indicators are bullish, signaling a return to $0.55.

On Friday, XRP rose by 2.67%. Following a 1.12% gain on Thursday, XRP ended the day at $0.53812. Significantly XRP avoided sub-$0.52 for the first time since March 31.

A mixed start to the day saw XRP fall to a mid-morning low of $0.52064. Steering clear of the First Major Support Level (S1) at $0.5176, XRP rose to an early afternoon high of $0.54117. XRP broke through the First Major Resistance Level (R1) at $0.5292 and the Second Major Resistance Level (2) at $0.5342 to end the day at $0.53812.

XRP Community Brushes Aside SEC Moves on SEC v Ripple Optimism

It was another quiet session on Friday. There were no SEC v Ripple Court rulings or filings to influence investor sentiment. The lack of case-related news left investors looking forward to the imminent release of the infamous William Hinman speech-related documents.

The unredacted versions could materially influence the SEC’s free reign and end the regulation-by-enforcement mantra that is impacting the US digital asset space.

In February, Ripple CEO Brad Garlinghouse had this to say about the Hinman speech-related documents,

“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.”

In the infamous 2018 speech, former SEC Director of the Division of Corporation Finance William Hinman said bitcoin (BTC) and ethereum (ETH) are not securities. Hinman previously worked with Simpson Thacher, which is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Considering the SEC’a failed attempts to shield the speech-related documents from the public, the content will garner plenty of interest on Tuesday.

Investors hoped the SEC would settle before the speech-related documents became public. However, a settlement looks less likely as the SEC intensifies its battle against crypto-related entities.

Ripple Chief Legal Officer Stuart Alderoty had this to say about the SEC moves against Binance and Coinbase,

“This week, we saw the SEC bet on a strategy of shock and awe. My money remains all in on the rule of law.”

The Day Ahead

With no US economic indicators to consider, XRP will remain in the hands of the ongoing SEC v Ripple case and SEC v Binance and SEC-Coinbase (COIN)-related news.

It could be a choppy session as investors grapple with the latest SEC moves and whether the filings against Binance and Coinbase can influence the direction of the SEC v Ripple case.

XRP Price Action

At the time of writing, XRP was down 0.75% to $0.53408. A mixed start to the day saw XRP rise to an early high of $0.53852 before falling to a low of $0.53050.

XRP sees red.
XRPUSD 100623 Daily Chart

XRP Technical Indicators

Resistance & Support Levels

R1 – $ 0.5460 S1 – $ 0.5255
R2 – $ 0.5538 S2 – $ 0.5128
R3 – $ 0.5744 S3 – $ 0.4923

XRP needs to avoid the $0.5333 pivot to target the First Major Resistance Level (R1) at $0.5460. A move through the Friday high of $0.54117 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5538. The Third Major Resistance Level (R3) sits at $0.5744.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5255 into play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.51. The Second Major Support Level (S2) at $0.5128 should limit the downside. The Third Major Support Level (S3) sits at $0.4923.

XRP resistance levels in play above the pivot.
XRPUSD 100623 Hourly Chart

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 $0.51912. The 50-day EMA pulled further 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 ($0.5255) and the 50-day EMA ($0.51912) would support a breakout from R1 ($0.5460) to target R2 ($0.5538). However, a fall through S1 ($0.5255) and the 50-day EMA ($0.51912) would bring S2 ($0.5128) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 100623 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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