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XRP Price Target Eases to $0.55 as SEC v Ripple Uncertainty Resurfaces

By:
Bob Mason
Published: Oct 9, 2022, 03:55 GMT+00:00

Following the end of a five-day winning streak, investors will eye updates from the SEC v Ripple case to support an XRP move towards $0.55.

XRP - Technical Analysis - FX Empire.

Key Insights:

  • On Saturday, XRP slipped by 0.18%, with the loss ending a five-day winning streak.
  • XRP joined the crypto top ten in the red, with a lack of updates from the SEC v Ripple case testing buyer appetite at $0.53.
  • The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.55.

On Saturday, XRP slipped by 0.18%. Partially reversing a 5.13% rally from Friday, XRP ended the day at $0.51721. The Saturday loss brought a five-day losing streak to an end.

A bullish start to the day saw XRP rise to an early morning high of $0.52904. Coming up short of the First Major Resistance Level (R1) at $0.5400, XRP fell to a late low of $0.51152. However, steering clear of the First Major Support Level (S1) at $0.4894, XRP bounced back to end the day at $0.51721.

The lack of updates from the ongoing SEC v Ripple case left XRP in the hands of broader market sentiment.

Investor Optimism Towards the SEC v Ripple Case Hits Pause

It was a quiet start to the weekend for Ripple, with no SEC v Ripple updates to provide XRP with direction.

A lack of an SEC response to Ripple’s mid-week Court filing and the Court ruling on the SEC objection to the Court denying the SEC’s motion to protect William Hinman’s speech-related docs tested buyer appetite.

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

The ramifications of an SEC win extend beyond XRP, leaving the broader crypto market on tenterhooks. Over the weekend, Cardano founder Charles Hoskinson delivered his thoughts on the SEC v Ripple case and the SEC classification of cryptos as securities. Hoskinson concluded,

“Courts make poor substitutes for legislative holes as we’ve seen with even stable rulings like Roe v Wade evaporating. If we desire certainty, then we need to legislate. This is our window. Do what you will with it.”

XRP Price Action

At the time of writing, XRP was down 1.17% to $0.51115.

A mixed start to the day saw XRP rise to an early high of $0.51576 before falling to a low of $0.50585. XRP fell through the First Major Support Level (S1) at $0.5095 before finding support.

XRP in the red.
XRPUSD 091022 Daily Chart

Technical Indicators

XRP needs to move through the $0.5193 pivot to target the First Major Resistance Level (R1) at $0.5270 and the Saturday high of $0.52904. Barring updates from the SEC v Ripple case, an XRP return to $0.52 would signal another bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5368. The Third Major Resistance Level (R3) sits at $0.5543.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5095 into play. Barring an extended sell-off, XRP should avoid sub-$0.50. The Second Major Support Level (S2) at $0.5017 should limit the downside. The Third Major Support Level (S3) sits at $0.4842.

XRP support levels in play below the pivot.
XRPUSD 091022 Hourly Chart

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 $0.48848. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.

An XRP hold above S1 ($0.5095) and a move through the pivot ($0.5193) would support a run at R1 ($0.5270) to target $0.53. However, a fall through S1 ($0.5095) and S2 ($0.5017) would give the bears a run at the 50-day EMA ($0.48848). The 200-day EMA sits at $0.43440.

EMAs bullish.
XRPUSD 091022 4 Hourly Chart

About the Author

Bob Masonauthor

With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.

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