XRP Price Action Turns Bullish as Amicus Brief Filings Roll In

Key Insights:

• On Friday, XRP reversed a 1.56% loss from Thursday to end the day at $0.47435.
• Updates from the SEC v Ripple case and crypto market hopes of a Fed pivot in December delivered a bullish session.
• The technical indicators are bullish, with XRP sitting above the 100-day EMA, signaling a return to sub-$0.50.

On Friday, XRP rose by 2.66%. Reversing a 1.56% loss from Thursday, XRP ended the day at $0.47435. Notably, XRP ended the session at its highest level since October 17.

A bearish start to the day saw XRP slide to a mid-morning low of $0.45668. Steering clear of the First Major Support Level (S1) at $0.4530, XRP rallied to a final hour high of $0.47513. Despite the bullish session, XRP fell short of the First Major Resistance Level (R1) at $0.4766 while avoiding a return to sub-$0.47.

Updates from the ongoing SEC v Ripple case provided XRP price support. However, a bullish crypto session, stemming from increased bets of a December Fed pivot, delivered the bullish session.

Amicus Brief Filings in Support of the Defendants Rise in Number

While investors await the next moves on the Hinman speech-related documents, Amicus brief filings rolled in.

On Friday, Spend The Bits Inc (STB) filed its Amicus Brief in support of Ripple. According to the filing, STB designed an application to transfer bitcoin (BTC) on the open-source blockchain technology of the XRP Ledger (XRPL) without Ripple’s knowledge, consent, or assistance.

In the filing to the Court, STB stated,

“While the SEC is supposed to concern itself with investments, the wide net it has cast in this litigation has hooked XRP purchasers, users, and developers alike. If this Court deems XRP a security, STB would be prevented from launching in the U.S., depriving U.S consumers from benefiting from the innovation and cost savings STB offers.”

STB also referenced the Howey Test, stating,

“When applying the Howey Test, it is clear the second and third factors cannot be met.”

STB went on to demonstrate how it is not in common enterprise with Ripple or its executives and how there is no expectation of profits.

Investor Choice Advocates Network (ICAN) also filed its Amicus Brief on Friday in support of the Ripple Defendants.

The filings followed a Court decision on Friday to allow STB and ICAN to file Amicus briefs.

On a busy Friday, The Blockchain Association also filed a request to file an Amicus Brief.

As the Amicus Brief filings continue, investors will need to be mindful of the pending Court decision on the latest SEC attempt to restrict disclosure of the Hinman speech-related documents.

This month, the SEC changed tact on shielding the Hinman docs under the attorney-client privilege. After failing to convince the Courts, the SEC now targets specific docs with requests for redactions.

William Hinman remains a central figure in the SEC v Ripple case despite the SEC’s best efforts. In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

A ruling in favor of the Defendants and the influx of Amicus Brief filings continue to tilt the scales in favor of a Ripple win.

XRP Price Action

At the time of writing, XRP was down 0.74% to $0.47082. A bearish start to the day saw XRP fall from an early high of $0.47323 to a low of $0.47029.

Technical Indicators

XRP needs to avoid the $0.4687 pivot to take a run at the First Major Resistance Level (R1) at $0.4808. An XRP move through the Friday high of $0.47513 would signal a bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4872 and $0.50. The Third Major Resistance Level (R3) sits at $0.5056.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4623 into play. However, barring an extended sell-off, XRP should avoid sub-$0.4550 and the Second Major Support Level (S2) at $0.4503. The Third Major Support Level (S3) sits at $0.4318.

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

At the time of writing, XRP sat above the 100-day EMA, currently at $0.46675. The 50-day EMA widened from the 200-day EMA, with the 50-day EMA narrowing to the 100-day EMA. The signals were bullish.

A hold above the 100-day EMA ($0.46675) would give the bulls a run at R1 ($0.4808). However, a fall through the 100-day EMA ($0.46675) would bring the 50-day EMA ($0.46452) and S1 ($0.4623) into view. The 200-day EMA sits at $0.45916