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XRP Price Response to SEC v Ripple Ruling Muted by Central Bank Policy

By:
Bob Mason
Published: Oct 12, 2022, 02:12 UTC

Another Court ruling goes against the SEC, which leaves the SEC to file an appeal to the Hinman ruling or prepare for the next Court date.

XRP Technical Analysis - FX Empire

Key Insights:

  • On Tuesday, XRP fell by 1.79% to end the day at sub-$0.49 for the first time in six sessions.
  • SEC v Ripple updates failed to impress despite another SEC loss, with central bank-fueled risk aversion weighing on riskier assets.
  • However, the technical indicators remain bullish, with XRP sitting above the 100-day EMA, supporting a return to $0.55.

On Tuesday, XRP fell by 1.79%. Following a 7.22% tumble on Monday, XRP ended the day at $0.48478. Notably, XRP fell for the third time in nine sessions and ended the day at sub-$0.49 for the first time in six sessions.

A bearish start to the day saw XRP slide to a late morning low of $0.47625. XRP fell through the First Major Support Level (S1) at $0.4787 before striking a late afternoon high of $0.50198. However, coming up short of the First Major Resistance Level (R1) at $0.5233, XRP fell back to end the day at sub-$0.49.

Through the Tuesday session, the balancing act between investor optimism towards the ongoing SEC v Ripple case and market angst over central bank monetary policy continued.

Central Bank Policy Overshadows Updates from the SEC v Ripple Case

On Tuesday, the Bank of England weighed on riskier assets. Bank of England Governor Andrew Bailey warned the markets of a Friday end to the Gilt purchase operations. Market disorder stemming from the UK government’s mini-budget had eased in response to the BoE’s interventions. The imminent move left led to a flight to safety, leaving XRP on the back foot.

However, updates from the ongoing SEC v Ripple case were XRP positive. Defense attorney James Filan shared the latest Court ruling.

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.

The ruling is significant as I-Remit and TapJets will likely show the use of XRP beyond the SEC’s classification as a security.

According to the TapJets filing,

“TapJets interest, in this case, is as a business that accepts cryptocurrency, including XRP, in exchange for its services as a fiat currency substitute. For TapJets, the acceptance of XRP as payment for services is vital in some instances.”

I-Remit is a global payment remittance company that uses the RippleNet software. According to the I-Remit filing,

“As a major ODL customer, I-Remit is interested in the outcome of this lawsuit because of its heavy reliance on XRP and the XRL Ledger. I-Remit has deep knowledge of these technologies that will aid the Court’s evaluation of the arguments advanced by the US Securities and Exchange Commission (“SEC”).

However, while the latest ruling is good news, the SEC 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.

XRP Price Action

At the time of writing, XRP was up 0.45% to $0.48694. A mixed start to the day saw XRP fall to an early low of $0.48364 before rising to a high of $0.48991.

XRP finds early support.
XRPUSD 121022 Daily Chart

Technical Indicators

XRP needs to move through the $0.4877 pivot to target the First Major Resistance Level (R1) at $0.4991 and the Tuesday high of $0.50198. XRP-friendly updates from the SEC v Ripple case should support a return to $0.50.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5134 and $0.52. The Third Major Resistance Level (R3) sits at $0.5391.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4734 in play. Barring another extended sell-off, XRP should avoid sub-$0.47 and the Second Major Support Level (S2) at $0.4619. The Third Major Support Level (S3) sits at $0.4362.

XRP support levels in play below the pivot.
XRPUSD 121022 Hourly Chart

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 $0.47941. The 50-day EMA narrowed to the 100-day EMA, while the 100-day EMA widened from the 200-day EMA. The signals were mixed.

An XRP move through the 50-day EMA ($0.49752) and R1 ($0.4991) would support a run at R2 ($0.5134) and $0.52. However, a fall through the 100-day EMA ($0.47941) would give the bears a run at S1 ($0.4734). The 200-day EMA sits at $0.44661.

EMAs bullish.
XRPUSD 121022 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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