XRP Price Breakout Comes as SEC v Ripple Updates Hit the Wires
- On Tuesday, XRP ended a five-day losing streak, with a late recovery delivering a 0.51% gain.
- Updates from the SEC v Ripple case delivered XRP with late support that has continued into this morning.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.40.
On Tuesday, XRP rose by 0.51%. Reversing a 0.13% loss from Monday, XRP ended the day at $0.3770.
A choppy start to the day saw XRP slide to an early low of $0.3668. Steering clear of the First Major Support Level (S1) at $0.3658, XRP struck a final hour high of $0.3783. Despite the late recovery, XRP came up short of the First Major Resistance Level (R1) at $0.3846.
Updates from the ongoing SEC v Ripple case provided support, with XRP investors brushing aside investor fears of an economic recession.
Investors React Favorably to the SEC Need to Further Justify an Objection
Momentum appears to be with the Ripple defense as investors and the broader crypto market await a ruling on the SEC’s latest attempt to shield William Hinman’s speech-related documents under the attorney-client privilege.
On Monday, Judge Netburn ruled in favor of a Ripple motion requesting to serve non-party subpoenas to authenticate seven videos of SEC officials’ public remarks.
To date, the SEC has not confirmed or denied if the video of Bill Hinman was Bill Hinman. This is despite Hinman being a former SEC Director. Bill Hinman’s remarks are among the seven videos in question.
Overnight, defense attorney James Filan shared the latest update from the SEC v Ripple case.
“The SEC has filed its Reply Brief in Further Support of its Objection to Magistrate Judge Netburn’s Orders Compelling the SEC to produce the Hinman Speech Materials.”
In late July, the SEC filed an objection to a July Court ruling denying its attempt to shield the William Hinman speech-related documents under the attorney-client privilege. The SEC reply brief highlights the importance of the documents and the SEC’s fear of another Court decision to deny.
However, with no court ruling on the SEC objection, investors should tread cautiously. The SEC will battle to shield the Hinman documents at any cost.
XRP Price Action
At the time of writing, XRP was up 2.65% to $0.3870.
A bullish start to the session saw XRP break through the First Major Resistance Level (R1) at $0.3813 and the Second Major Resistance Level (R2) at $0.3855 to a high of $0.3870.
XRP needs to avoid R1, R2, and the $0.3754 pivot to support a run at the Third Major Resistance Level (R3) at $0.3970 and resistance at $0.40.
A bullish broader market morning session would support a return to $0.40. In the case of an extended crypto rally, XRP could target a return to $0.45.
A fall through the Major Resistance Levels and the pivot would bring the First Major Support Level at $0.3698 into play. Barring a broad-based crypto reversal, XRP should avoid sub-$0.3650 and the Second Major Support Level (S2) at $0.3625.
The Third Major Support Level (S3) sits at $0.3510.
Court rulings on the SEC objection would break down the support and resistance levels.
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 $0.3763.
The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA, delivering bullish price signals.
The breakout from the 50-day EMA would support a run at R3 ($0.3970) to test resistance at $0.40.
A fall through the 50-day EMA and the 100-day EMA (0.3730) would bring the 200-day EMA (0.3667) and S1 (0.3658) into view. Expect XRP to come under intense selling pressure in the event of a fall through the 200-day EMA.