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XRP Price Target Remains $0.50 as Investors Decipher SEC v Ripple Filings

By:
Bob Mason
Published: Oct 22, 2022, 01:15 GMT+00:00

XRP is back on the move as investors digest the latest activity from the SEC v Ripple case. Hinman's speech-related documents remain central.

XRP Technical Analysis - FX Empire

Key Insights:

  • On Friday, XRP rallied by 3.28% to end a three-day losing streak.
  • Less hawkish Fed chatter, US Treasury Secretary Janet Yellen, and SEC v Ripple case updates delivered support.
  • The technical indicators remain bearish, with XRP sitting below the 200-day EMA, signaling a fall to sub-$0.40.

On Friday, XRP rallied by 3.28%. Reversing a 1.03% loss from Thursday, XRP ended the day at $0.46122. XRP ended the day below the $0.50 mark for the twelfth consecutive session.

Bearish through the morning session, XRP fell to a mid-day low of $0.43500. However, steering clear of the First Major Support Level (S1) at $0.4240, XRP rallied to a final-hour high of $0.46122. Despite the bullish afternoon, XRP came up short of the First Major Resistance Level (R1) at $0.4672.

Updates from the ongoing SEC v Ripple case delivered much-needed XRP price support, with market sentiment toward the Fed also price positive. Less hawkish Fed chatter and calming comments from US Treasury Secretary Janet Yellen supported a bullish session.

Investors Respond to Hinman Doc Content and Other Court Filings

It was a busy Friday session, with plenty of activity from the SEC v Ripple case to draw interest.

SpendDBits was the latest company to file an application for an Amicus Brief. The company uses XRPL to transfer BTC.

On Friday, the SEC filed a Letter Motion to Judge Netburn, requesting in camera review proposed redactions to two drafts that form part of the Hinman speech-related documents. After failing to shield the documents under the attorney-client privilege, SEC lawyers are trying to shield sensitive communications by redaction.

After weeks of inactivity, the unsealing of documents and the latest filings will take time for investors to decipher. However, the SEC’s continued attempts to shield content from the Hinman speech-related documents will keep Hinman a central figure.

XRP Price Action

At the time of writing, XRP was up 0.08% to $0.46160. A mixed start to the day saw XRP fall to an early low of $0.45921 before rising to a high of $0.46264.

XRP finds early support.
XRPUSD 221022 Daily Chart

Technical Indicators

XRP needs to avoid the $0.4525 pivot to take a run at the First Major Resistance Level (R1) at $0.4700. Updates from the SEC v Ripple case remain the key driver. However, XRP would need broader market support for another bullish session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4787 and $0.4850. The Third Major Resistance Level (R3) sits at $0.5049.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4437 into play. However, barring an extended sell-off, XRP should avoid sub-$0.43 and the Second Major Support Level (S2) at $0.4263. The Third Major Support Level (S3) sits at $0.4000.

XRP resistance levels in play above the pivot.
XRPUSD 221022 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 50-day EMA, currently at $0.46704. 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.

XRP needs to move through the 50-day EMA ($0.46704) to target R1 ($0.4700) and the 100-day EMA ($0.47148). However, a fall through the 200-day EMA ($0.45727) would bring S1 ($0.4437) into play.

EMAs bearish.
XRPUSD 221022 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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