XRP Price Action Turns Bearish Despite SEC v Ripple Optimism

Key Insights:

• On Wednesday, XRP ended a two-day mining losing streak with a 0.74% gain to end the day at $0.48835.
• SEC v Ripple updates provided much-needed support, with another Court ruling going against the SEC.
• However, the technical indicators are turning bearish, with XRP sitting below the 100-day EMA, signaling a return to sub-$0.45.

On Wednesday, XRP rose by 0.74%. Partially reversing a 1.79% loss from Tuesday, XRP ended the day at $0.48835. Notably, XRP rose for the seventh time in ten sessions, while ending the day at sub-$0.49 the second time in seven sessions.

A mixed start to the day saw XRP fall to an early low of $0.48207. Steering clear of the First Major Support Level (S1) at $0.4734, XRP struck a mid-afternoon high of $0.49570. However, falling short of the First Major Resistance Level (R1) at $0.4991, XRP fell back to end the day at sub-$0.49.

Updates from the ongoing SEC v Ripple case provided price support, though the upside was limited, with crypto headwinds and uncertainty over the SEC’s next moves leaving XRP short of $0.50.

SEC Loses out to Ripple in another Court Ruling to Deliver XRP Support

This week, updates from the SEC v Ripple case were XRP price friendly. Overnight on Tuesday, Judge Torres granted I-Remit’s and TapJet’s requests to file amicus briefs in support of Ripple. It was another blow for the SEC, who opposed the filings much to the dissatisfaction of the defendants.

On Wednesday, I-Remit formally filed its Amicus Brief, to support the Defendant’s Motion for Summary Judgment.

Defense attorney James Filan shared the filing, which attempts to show that XRP is not a security by discussing the uses of XRP in everyday business. I-Remit made some interesting points relating to the Howe test, including,

“Even assuming that the SEC could establish the first two Howey factors – that there has been an investment of money into a common enterprise – it cannot establish the third. As I-Remit’s usage of XRP reveals, XRP (1) is not used with any expectation of profit and (2) is not used because of reliance upon Ripple’s purported efforts to enhance XRP’s value.”

However, while the latest filing is good news, the SEC still has not responded to the Court overruling the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

Investors continue to view the Hinman speech-related documents as the key to the case.

Moving away from the SEC v Ripple case, Ripple Labs continued to expand, with new On-Demand Liquidity (ODL) customers in France and Sweden.

XRP Price Action

At the time of writing, XRP was down 3.71% to $0.47025. A bearish start to the day saw XRP slide from an early high of $0.48938 to a low of $0.4652.

XRP fell through the First Major Support Level (S1) at $0.4817 and the Second Major Support Level (S2) at $0.4751. Reports of Russia launching missile strikes on Mykolaiv weighed on riskier assets.

Technical Indicators

XRP needs to move through S2, S1, and the $0.4887 pivot to target the First Major Resistance Level (R1) at $0.4953 and the Wednesday high of $0.4957. XRP-friendly updates from the SEC v Ripple case and softer US inflation should support a return to $0.49.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5023. The Third Major Resistance Level (R3) sits at $0.5160.

Failure to move through S2, S1, and the pivot would leave the Third Major Support Level (S3) at $0.4614 in play. Barring an extended sell-off, XRP should avoid sub-$0.46. However, another spike in US inflation could fuel a broad-based crypto sell-off.

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

At the time of writing, XRP sat above the 200-day EMA, currently at $0.44896. The 50-day EMA closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

A move through S2 ($0.4751) and the 100-day EMA ($0.48025) would support a breakout from S1 ($0.4817) to target the 50-day EMA ($0.49521) and R1 ($0.4953). However, failure to move through the 100-day EMA ($0.48025) would give the bears a run at S3 ($0.4614). The 200-day EMA sits at $0.44896.