XRP Price Breakout Could Be Imminent as SEC Turns Over Hinman Docs

Bob Mason
Updated: Oct 21, 2022, 23:46 UTC

XRP is under the pressure this morning after returning to sub-$0.45. However, the Hinman docs could fuel a breakout once the contents are revealed.

XRP - Technical Analysis - FX Empire.

Key Insights:

  • On Thursday, XRP extended its losing streak to three sessions with a 1.03% loss.
  • Risk aversion left XRP in negative territory, with updates from the ongoing SEC v Ripple case failing to distract investors.
  • The technical indicators remain bearish, with XRP sitting below the 200-day EMA, signaling a fall to sub-$0.40.

On Thursday, XRP fell by 1.03%. Following a 3.05% slide on Wednesday, XRP ended the day at $0.44656. Notably, XRP ended the day at sub-$0.45 for the tenth consecutive session.

A bullish start to the day saw XRP rise to a late-morning high of $0.46529. XRP broke through the First Major Resistance Level (R1) at $0.4625 before sliding to a late low of $0.42204. XRP fell through the First Major Support Level (S1) at $0.4439 and the Second Major Support Level (S2) at $0.4367.

However, finding late support, XRP bounced back to end the day at $0.44656. Updates from the ongoing SEC v Ripple case failed to deliver XRP price support, with market sentiment toward the Fed remaining the key driver.

SEC Under Pressure as Ripple Turns the Screw at Court Session

Following the filings of all materials relating to opposition to summary judgment motions, the SEC and the Defendants attended a Court session on Thursday. The purpose of the session was for the SEC and the Defendants to identify redaction requests from the opposition briefs.

After the filings, CryptoLaw filed numerous documents unsealed upon review. However, more notably, the SEC turned over the Hinman documents.

Ripple lawyer Stuart Alderoty said,

“Over 18 months and 6 court orders later, we finally have the Hinman docs (internal SEC emails and drafts of his famous 2018 speech). While they remain confidential for now (at the SEC’s insistence), I can say that it was well worth the fight to get them.”

Alderoty added,

“I’ve always felt good about our legal arguments, and I feel even better now. I’ve always felt bad about the SEC’s tactics, and I feel even worse about them now.”

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Brad Garlinghouse also took to Twitter, saying,

“The SEC wants you to think that it cares about disclosure, transparency, and clarity. Don’t believe them. When the truth eventually comes out, the shamefulness of their behaviour here will shock you.”

While the market showed little reaction to the news of the SEC turning over the docs, we can expect a strong response once the Defendants can reveal the contents.

XRP Price Action

At the time of writing, XRP was down 0.24% to $0.44549. A mixed start to the day saw XRP rise to an early high of $0.44831 before falling to a low of $0.44161.

XRP under pressure.
XRPUSD 211022 Daily Chart

Technical Indicators

XRP needs to avoid the $0.4446 pivot to take a run at the First Major Resistance Level (R1) at $0.4672. Any further comments regarding the Hinman docs need to be XRP-friendly to support a breakout session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4879 and $0.50. The Third Major Resistance Level (R3) sits at $0.5311.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4240 into play. However, barring an extended sell-off, XRP should avoid sub-$0.40. The Second Major Support Level (S2) at $0.4014 should limit the downside. The Third Major Support Level (S3) sits at $0.3581.

XRP resistance levels in play above the pivot.
XRPUSD 211022 Hourly Chart

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 $0.45759. The 50-day EMA pulled back from the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

Following the bearish cross, XRP needs to move through the 200-day EMA ($0.45759) to target R1 ($0.4672) and the 50-day EMA ($0.47098). Failure to move through the 200-day EMA ($0.45759) would bring S1 ($0.4240) into play.

EMAs bearish.
XRPUSD 211022 4 Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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