XRP Price Trends Support a Run at $0.45 on Investor Optimism

Key Insights:

• On Tuesday, XRP wrapped up the day at $0.4145, with a 7.74% breakout session.
• XRP bucked the broader market trend, with investor optimism towards the SEC v Ripple case providing support.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.50.

On Tuesday, XRP rose by 7.74%. Following a 7.69% rally on Monday, XRP ended the day at $0.41447.

A bearish start to the day saw XRP fall to an early low of $0.3709. Steering clear of the First Major Support Level (S1) at $0.3521, XRP rallied to a late high of $0.42369. XRP broke through the First Major Resistance Level (R1) at $0.4053 to visit $0.42 for the first time since June. However, an afternoon pullback saw XRP end the day at sub-$0.42.

Sentiment towards the SEC v Ripple case delivered a trend-bucking session.

Hopes of a Favorable Settlement Delivered XRP Price Support

Investor sentiment towards the outcome of the SEC v Ripple case continued to improve on Tuesday. The markets expect an early end to the SEC v Ripple case, stemming from the Motions for Summary judgment filings ahead of schedule.

A sudden shift in focus from the William Hinman speech-related documents to the sealing of court documents suggests an out-of-court agreement. The defendants filed the Motion for Summary Judgment without a Court ruling on the Hinman speech-related docs.

Until late July, the SEC had battled to shield the Hinman documents under the attorney-client privilege.

Counsel for Amici John Deaton, who represents more than 70,000 XRP holders, added that the SEC made no references to expert testimony in its Motion for Judgment Summary. Deaton noted that the SEC failed to reference expert testimony on XRP performance relating to the performance of Ripple.

Overnight, Ripple objected to the SEC letter to the Court that stated it could seek more time or pages in response to any Amici Curia brief submissions. While investors are looking for a swift and favorable conclusion, the SEC seems willing to continue to drag its feet.

XRP Price Action

At the time of writing, XRP was down 1.17% to $0.40960. A mixed start to the day saw XRP rise to an early high of $0.41452 before falling to a low of $0.40883.

Technical Indicators

XRP needs to avoid the $0.4030 pivot to target the Tuesday high of $0.42369 and the First Major Resistance Level (R1) at $0.4351.

With optimism towards the SEC v Ripple case delivering support, updates will need to be XRP-friendly today. However, away from the SEC v Ripple case, the Fed could influence late in the Wednesday session.

Another bullish session would support a run at $0.45 and the Second Major Resistance Level (R2) at $0.4558. The Third Major Resistance Level (R3) sits at $0.5086.

A fall through the pivot would bring the First Major Support Level (S1) at $0.3824 into play. Barring another extended sell-off, XRP should steer clear of sub-$0.37 and the Second Major Support Level (S2) at $0.3502.

The Third Major Support Level (S3) sits at $0.2974.

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 $0.36552. 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 price positives.

Following Monday’s breakout from the 50-day EMA, the current trend supports a run at R1 ($0.4351) and $0.45. However, a fall through the pivot ($0.4030) would give the bears a run at S1 ($0.3824) and the 50-day EMA ($0.36552).