XRP Price Action Turns Bullish on Sentiment towards SEC Case
- On Saturday, XRP rose by 5.87% to end the day at $0.37739.
- Market sentiment towards the outcome of the SEC v Ripple case remained optimistic, supporting a second bullish session.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.40.
Following a 9.23% breakout session on Friday, XRP rallied by 5.87% on Saturday to end the day at $0.37739.
A bearish start to the day saw XRP fall to a mid-morning low of $0.34675 before making a move. Avoiding the First Major Support Level (S1) at $0.3328, XRP surged to a late afternoon high of $0.3800. XRP broke through the First Major Resistance Level (R1) at $0.3688.
However, coming up against the Second Major Resistance Level (R2) at $0.3811, XRP slipped back to sub-$0.3780. Hopes of a favorable outcome to the SEC v Ripple case continued to support the XRP return to $0.40.
Both Sides File Motions for Summary Judgement Ahead of Schedule
Overnight, defense attorney James Filan shared the latest from the SEC v Ripple case. The SEC and the Defendants (Ripple Labs, Brad Garlinghouse, and Chris Larsen) filed Motions for Summary Judgement ahead of schedule.
James Filan took to Twitter, saying,
“BREAKING: Ripple Labs, Brad Garlinghouse, and Chris Larsen file Motion for Summary Judgement Seeking Judgment as a matter of law.”
The filings follow two bullish XRP sessions that stemmed from the optimism of a favorable outcome to the SEC v Ripple case.
Interestingly, the central figure in the SEC v Ripple case appears to have moved to the sidelines. Throughout 2022, the SEC has battled to shield William Hinman’s speech-related articles under the attorney-client privilege.
The former SEC Director of the Division of Corporation Finance, William Hinman, was a central figure in the SEC v Ripple case. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
In July, the SEC filed an objection to a Court ruling denying the SEC motion to shield the Hinman speech-related documents under the attorney-client privilege. The SEC has filed at least seven motions to shield the speech-related documents. However, in recent weeks reference to the Hinman documents has ceased, suggesting a possible agreement.
We speculated that the SEC would favor a settlement rather than disclose the content of Hinman’s speech-related docs. This was based on the SEC’s efforts to prevent the content from becoming a matter of public record.
The Motions for Summary Judgment also suggest a possible agreement between the two parties. There is some rationale behind the shift in sentiment towards the outcome of the SEC v Ripple case, with the Defendants unlikely to settle with unfavorable terms.
XRP Price Action
At the time of writing, XRP was down 2.12% to $0.36939. A bearish start to the day saw XRP fall from an early high of $0.37629 to a low of $0.36391.
XRP needs to avoid the $0.3680 pivot to target the First Major Resistance Level (R1) at $0.3893.
Following two breakout sessions, bullish sentiment from the broader market would support a run at the Second Major Resistance Level (R2) at $0.4013. Further updates on the SEC v Ripple case will likely influence.
Investor jitters could surface following the Motions for Summary Judgments. The Third Major Resistance Level (R3) sits at $0.4345.
A fall through the pivot would bring the First Major Support Level (S1) at $0.3561 into play. Barring another extended sell-off, XRP should avoid sub-$0.35 and the Second Major Support Level (S2) at $0.3348.
The Third Major Support Level (S3) sits at $0.3015.
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 $0.34597. Following Saturday’s bullish cross, the 50-day EMA moved away from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were price positive.
A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout from R1 ($0.3893) to give the bulls a run at R2 ($0.4013). However, a fall through the EMAs would bring S1 ($0.3561) into play.