XRP Return to $0.47 in the Hands of the SEC v Ripple Case and the Fed

Key Insights:

• On Tuesday, XRP slipped by 0.18%, marking the third loss in four sessions.
• Movement throughout the session was relatively range-bound. Uncertainty towards the SEC v Ripple case and the Fed limited intraday moves.
• The technical indicators are bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.50.

On Tuesday, XRP slipped by 0.18%. Partially reversing a 1.60% gain from Monday, XRP ended the day at $0.46413. Notably, XRP avoided sub-$0.45 while falling short of $0.47 for a second consecutive session.

After a range-bound morning, XRP fell to an early afternoon low of $0.45470. Steering clear of the First Major Support Level (S1) at $0.4530, XRP rose to a late high of $0.46668. However, coming up short of the First Major Resistance Level (R1) at $0.4722, XRP fell back into the red.

Updates from the SEC v Ripple case provided XRP price support while Fed fear pegged XRP back from a bullish session.

Amicus Brief Filings and Requests Continue Amidst SEC Silence

Following the Coinbase (COIN) request to file an Amicus brief on Monday, the Crypto Council for Innovation (CCI) and Valhil Capital LLC requested permission to file Amicus briefs on Tuesday.

The Crypto Council for Innovation requested permission to file an Amicus Brief to support the Defendants’ Brief in Opposition to the SEC’s Motion for Summary Judgment.

According to the request,

“CCI also has a strong interest in the resolution of this action, which will have wide-ranging implications for digital asset holders, as well as for developers, operators, and investors that are building the crypto ecosystem.”

The CCI added raised two points from the industry’s perspective.

First,

“This suit against Ripple is part of a larger pattern of enforcement actions against firms involved in the digital asset ecosystem. To date, the SEC has largely chosen enforcement over rulemaking as the way to regulate this evolving ecosystem.”

Second,

“A decision for the SEC could bless an impermissible extension of the Commission’s jurisdiction beyond that provided by Congress, resulting in significant burdens on market participants.”

Valhil Capital LLC also requested to file an Amicus Brief. Valhil is a private equity firm with a portfolio of early-stage companies, brands, and alternative asset classes.

According to the request, Valhil has ‘integrated XRP in its day-to-day operations and portfolio management. Significantly, Valhil compensates its executives in XRP, and its portfolio investments maintain their excess cash in digital assets, including XRP.’

Valhil added,

“One of Valhil’s most significant investments is in its portfolio company, Deltawave Energy, whose operation and structure relies significantly on XRP.”

While the requests and filings of Amicus Briefs support the Defendants’ case, it will boil down to how the judge considers each brief.

The SEC has remained silent during the latest requests and filings. It remains to be seen whether the SEC will wait until November 15 or file objections ahead of the November 15 filing of summary judgment reply briefs.

XRP Price Action

At the time of writing, XRP was up 0.34% to $0.46570. A mixed start to the day saw XRP fall to an early low of $0.46155 before rising to a high of $0.46570.

Technical Indicators

XRP needs to avoid the $0.4618 pivot to take a run at the First Major Resistance Level (R1) at $0.4690 and $0.47. An XRP move through the Tuesday high of $0.46668 would signal a bullish session.

In the case of an extended rally, the Second Major Resistance Level (R2) at $0.4738 and $0.48 would come into play. The Third Major Resistance Level (R3) sits at $0.4858.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4570 into play. However, barring an extended sell-off, XRP should avoid sub-$0.45 and the Second Major Support Level (S2) at $0.4499. The Third Major Support Level (S3) sits at $0.4379.

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 $0.46317. The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA pulling away from the 200-day EMA. The signals were bullish.

A move through the 100-day EMA ($0.46522) would give the bulls a run at R1 ($0.4690) and $0.47. However, a fall through the 50-day EMA ($0.46317) would bring the 200-day EMA ($0.45997) and S1 ($0.4570) into view.