XRP Moves Hinged on Court Ruling Following the SEC-Ripple Conference
- On Tuesday, Judge Sarah Netburn held an SEC-Ripple conference to dig deeper into the SEC’s claims that William Hinman’s speech-related documents fall under the attorney-client privilege.
- The SEC has relentlessly attempted to shield the Hinman documents from the Ripple defense, placing a final court ruling at the heart of the SEC’s case.
- Key technical indicators remain bearish. XRP sits below the 100-day EMA.
On Tuesday, XRP rose by 1.22%. Following a 1.87% gain on Monday, XRP ended the day at $0.4025. The upside came as investors turned their attention to the SEC-Ripple conference.
A choppy session saw XRP slide to an early morning low of $0.3839 before finding support.
XRP fell through the First Major Support Level at $0.3946 and the Second Major Support Level at $0.3868.
The rebound saw XRP break back through the Major Support Levels and through the First Major Resistance Level at $0.4096 to strike a day high of $0.4167.
Coming up against the Second Major Resistance Level at $0.4168, XRP fell back to end the day at sub-$0.41.
While movement throughout the day tracked the broader crypto market, there was also plenty of interest in the court-scheduled SEC-Ripple conference to discuss the William Hinman speech-related documents and SEC claims that the documents fall under the attorney-client privilege.
Attorney John Deaton discussed the conference on YouTube late on Tuesday.
An SEC-Ripple Conference Summary Had a Muted Impact on XRP
On Tuesday, attorney John Deaton delivered interested parties a summary of the SEC-Ripple conference.
Deaton highlighted comments and a series of questions posed by Judge Sarah Netburn during the conference. These included,
- Help me understand what advice Hinman received?
- For what was he seeking advice?
- Do you stand by the position last year that the speech was his personal opinion?
- The SEC has distanced itself from that speech as his personal opinion.
John Deaton, who attended the conference in New York, made some observations, which included,
- When the SEC has to turn over the documents, the SEC will settle.
- Judge Netburn knows that the SEC will appeal any unfavorable ruling to Judge Torres.
- SEC used a junior lawyer to represent at the conference, suggesting the SEC knows they have a losing a hand.
- Court decision likely by the end of next week with a ruling likely in favor of Ripple.
- A settlement would remove the chances of an appeal and provide certainty.
- The only way the SEC will settle is if the court rules in favor of Ripple vis-à-vis the Hinman speech-related docs.
- Assuming there is no settlement, the summary judgments are all due by November, with the court decision likely in March.
- Loomis Bill could usurp the case, but the bill will need to be signed by the president, making it more likely that a settlement or a court ruling will come first.
- Fair notice defense would mean that Ripple won’t have to pay the fine, but XRP will be a security. Such an outcome would leave XRP holders stranded.
Ripple (XRP) Price Action
At the time of writing, XRP was down 1.96% to $0.3994.
A mixed morning saw XRP rise to an early high of $0.4099 before falling to a low of $0.3947.
XRP will need to move through the $0.4027 pivot to target the First Major Resistance Level at $0.4214. XRP would need the broader crypto market support to break out from the morning high of $0.4099.
In a broad-based crypto rebound, XRP should test resistance at $0.43. The Second Major Resistance Level sits at $0.4355.
Failure to move back through the pivot would bring the First Major Support Level at $0.3886 back into play.
Barring an extended sell-off throughout the day, XRP should avoid sub-$0.3850. The Second Major Support Level sits at $0.3699.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 100-day EMA, currently at $0.4079. Today, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA fell back from the 200-day EMA, XRP negative.
A move through the 100-day EMA to $0.41 would support a run at the 200-day EMA and $0.45. For XRP, a breakout may be unlikely ahead of any court ruling on the Hinman documents following the SEC-Ripple conference.