XRP Price Action in the Hands of the SEC v Ripple Case and US Stats

Key Insights:

• On Thursday, XRP rose by 1.06%, marking the second gain in six sessions.
• Updates from the SEC v Ripple case had limited impact, leaving XRP in the hands of US economic indicators and broader market sentiment.
• The technical indicators are bearish, with XRP sitting below the 200-day EMA, signaling a return to sub-$0.40.

On Thursday, XRP rose by 1.06%. Partially reversing a 2.99% slide from Wednesday, XRP ended the day at $0.45503. Notably, XRP fell short of $0.46 for the first time since September 28.

A mixed start to the day saw XRP fall to an early low of $0.44790. Steering clear of the First Major Support Level (S1) at $0.4418, XRP rose to a late morning high of $0.46642. XRP broke through the First Major Resistance Level (R1) at $0.4623 before falling back to sub-$0.4520.

However, finding support from the US economic calendar, XRP bounced back to end the day at $0.45503.

Updates from the SEC v Ripple case had a muted impact, leaving investors to respond to US economic indicators. The stats were crypto-positive, with investors reacting to weaker service sector PMI numbers.

In October, the ISM Non-Manufacturing PMI fell from 56.7 to 54.4. Economists forecast a decline to 55.5.

Sub-components of the Index were mixed. The ISM Non-Manufacturing Employment Index fell from 53.0 to 49.1. However, the Prices Index rose from 68.7 to 70.7.

Other stats included the jobless claims and unit labor cost numbers, which were crypto-positive. Unit labor costs rose by 3.5% in Q3, down from 8.9% in Q2, while initial jobless claims slipped from 218k to 217k.

SEC Files Motion for Extension and to Limit Inflow of Amicus Briefs

On Thursday, requests to file Amicus Briefs continued to roll in, inundating the Court with requests and Amicus Briefs.

Online digital wallet services company Cryptillian Payment Systems requested to file an Amicus Brief, with Veri DAO LLC filing a motion to file an Amicus Brief.

However, with the ever-increasing inflow of requests and Amicus Brief filings, the SEC looked to stem the tide. On Thursday, defense attorney James Filan shared the latest SEC filing, saying,

“The SEC has filed a Motion to Extend the Time to all parties’ Reply Briefs until November 30, 2022, and asks the Court to Order that any additional Amicus Briefs be filed by November 11, 2022. Ripple consents. New dates in motion.”

The SEC motion indicates that the SEC will attempt to counter the individual Amicus Brief filings, which should make the November 30 Reply Briefs more interesting. The SEC’s handling of the Amicus Briefs will give investors an idea of what the Court needs to consider vis-à-vis the Amicus Briefs.

In addition to the November 30 extension, the SEC also requested extensions to the other Court dates. The SEC requested to extend the date to file oppositions to the omnibus motions to seal to January 9, 2023.

XRP Price Action

At the time of writing, XRP was up 0.08% to $0.45540. A mixed start to the day saw XRP fall to an early low of $0.45398 before rising to a high of $0.45780.

Technical Indicators

XRP needs to avoid the $0.4545 pivot to take a run at the First Major Resistance Level (R1) at $0.4599. An XRP return to $0.46 would signal a bullish session, though US stats and SEC v Ripple updates would need to be price-friendly to support a breakout. Today, the US Jobs Report will be a focal point.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4647 and $0.47. The Third Major Resistance Level (R3) sits at $0.4750.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4496 into play. However, barring an extended sell-off, XRP should avoid sub-$0.44. The Second Major Support Level (S2) at $0.4442 should limit the downside. The Third Major Support Level (S3) sits at $0.4339.

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

At the time of writing, XRP sat below the 200-day EMA, currently at $0.45942. The 50-day EMA closed in on the 200-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

A move through the 200-day EMA ($0.45942) would give the bulls a run at R1 ($0.4699) and the 50-day EMA ($0.46012). However, failure to move through the 200-day EMA ($0.45942) would leave S1 ($0.4496) in view.