XRP Price Volatility to Pick Up as Focus Shifts To SEC v Ripple Filings
- On Wednesday, XRP rose by 2.43%, marking the eighth gain in ten sessions.
- A less hawkish Fed Chair Powell and optimism toward the SEC v Ripple case delivered XRP price support.
- The technical indicators are bullish, with XRP sitting at the 200-day EMA, signaling a possible return to sub-$0.45.
On Wednesday, XRP rose by 2.43%. Following a 2.36% gain from Tuesday, XRP ended the day at $0.40786. Notably, XRP ended the day at $0.40 for the first time in five sessions.
A choppy start to the day saw XRP rise to an early high of $0.40842. XRP broke through the First Major Resistance Level (R1) at $0.4069 before sliding to a late afternoon low of $0.39288.
However, steering clear of the First Major Support Level (S1) at $0.3862, XRP rallied to a late-day high of $0.41147 before easing back. XRP broke back through R1 to end the day at $0.40786.
SEC v Ripple Activity Takes a Backseat to a Less Hawkish Fed Chair
Updates from the ongoing SEC v Ripple case will become a focal point from today.
The SEC and the defendants filed their Replies to the Oppositions to the Motions for Summary Judgment on Wednesday. As per the Court schedule, the filings are under seal, with redacted versions available to the public by Monday, December 5.
However, defense attorney James Filan pointed out that the parties may make redacted versions available sooner.
Filan also shared his views on the timing vis-à-vis the Hinman documents. Filan noted three major outstanding issues, including sealing-related issues regarding the expert reports, the Hinman documents, and other materials.
Filan believes that Judge Torres will not give a separate ruling on the sealings. Any documents she relies upon for giving her ruling will be considered a judicial document and therefore become available to the public.
Filan’s view aligns with those who believe that the SEC will settle should the defendants reference the Hinman speech-related documents in the Summary Judgment Reply briefs. In cases where Judge Torres considers the Hinman documents, these would become available to the public.
By way of history, the SEC failed to shield the Hinman speech-related documents on more than six occasions. The sheer number of failed attempts reflects the SEC’s desire to prevent the documents from becoming public.
While investors wait for the redacted versions, XRP remains in the hands of the broader crypto market.
On Wednesday, Fed Chair Powell delivered a less hawkish speech, driving demand for riskier assets. US economic indicators and Fed commentary will likely influence later today.
However, investors will need to look out for the redacted versions that could surface at any time.
XRP Price Action
At the time of writing, XRP was down 1.30% to $0.40257. A mixed start to the day saw XRP rise to an early high of $0.40916 before falling to a low of $0.40000.
XRP needs to move through the $0.4041 pivot to target the First Major Resistance Level (R1) at $0.4153. A move through the Wednesday high of $0.41147 would signal a breakout session.
In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4227 and $0.43. The Third Major Resistance Level (R3) sits at $0.4413.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3967 in play. Barring an extended sell-off, XRP should avoid sub-$0.3900 and the Second Major Support Level (S2) at $0.3855. The Third Major Support Level (S3) sits at $0.3669.
XRP movement will likely hinge on updates from the SEC v Ripple case and today’s US economic indicators.
The EMAs and the 4-hourly candlestick chart (below) sent a more bullish signal.
At the time of writing, XRP sat below the 200-day EMA, currently at $0.40432. The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bullish.
A breakout from the 200-day EMA would support a move through R1 ($0.4153) to target R2 ($0.4227) and $0.43. However, a fall through S1 ($0.3967) would bring the 50-day ($0.39300) and the 100-day ($0.39276) EMAs into view.