XRP Price Action Bullish on Investor Optimism Towards the SEC Case
- On Wednesday, XRP fell by 4.85%, with the downside breaking a recent uptrend fueled by optimism towards the SEC v Ripple case.
- While fall-out from the Fed rate hike and FOMC projections continues to hit the NASDAQ 100, XRP is on the move this morning.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.50.
On Wednesday, XRP slid by 4.85%. Partially reversing a 7.74% breakout from Tuesday, XRP ended the day at $0.39437.
After a choppy morning session, XRP slid to a low of $0.38227. XRP tested the First Major Support Level (S1) at $0.3824 before striking a high of $0.43422. However, falling short of the First Major Resistance Level (R1) at $0.4351, XRP slid back to sub-$0.39 before finding late support to reduce the deficit.
Hopes of a Favorable Settlement Resurface after Fed Sell-Off
Investor focus has returned to the SEC v Ripple case following Wednesday’s Fed rate hike and FOMC projections.
While there are no comments from either party to suggest a settlement, a series of events have occurred that support the shift in investor sentiment.
Over the weekend, the SEC and the Defendants filed their Motions for Summary judgment ahead of schedule. Significantly, the defendants filed the Motion for Summary Judgment before a Court decision on the SEC objection to the Court denying the SEC motion to shield William Hinman’s speech-related documents under the attorney-client privilege.
Until late July, the SEC had battled to shield the Hinman documents under the attorney-client privilege.
XRP Price Action
At the time of writing, XRP was up 6.88% to $0.42149. A bullish start to the day saw XRP rise from an early low of $0.39464 to a high of $0.42603.
XRP broke through the First Major Resistance Level (R1) at $0.4250 before easing back.
XRP needs to avoid the $0.4036 pivot to retarget the First Major Resistance Level (R1) at $0.4250 and the Wednesday high of $0.43422.
With optimism towards the SEC v Ripple case delivering support, updates will need to be XRP-friendly today to bring $0.45 back into view. An extended rally would support a run at $0.45 and the Second Major Resistance Level (R2) at $0.4556. The Third Major Resistance Level (R3) sits at $0.5075.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3730 into play. Barring another extended sell-off, XRP should steer clear of sub-$0.37 and the Second Major Support Level (S2) at $0.3517.
The Third Major Support Level (S3) sits at $0.2997.
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.37479. The 50-day EMA widened from the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were price positives.
Following Monday’s breakout from the 50-day EMA, the current trend supports an XRP breakout from R1 ($0.4250) to target $0.45. However, a fall through the 50-day EMA ($0.37479) and S1 ($0.3730) would give the bears a run at the 100-day EMA ($0.36157) and the 200-day EMA ($0.35362).