XRP Return to $0.55 Hinged on US Lawmakers and SEC v Ripple Chatter

Bob Mason
Published: Jun 7, 2023, 02:41 GMT+00:00

After the Tuesday rebound, XRP was under pressure this morning. Hopes of a Ripple win against the SEC should provide support, however.

XRP - Technical Analysis - FX Empire.

In this article:

Key Insights:

  • On Tuesday, XRP gained 4.06% to end the day at $0.52985.
  • There were no updates from the SEC v Ripple case to deliver support, leaving dip buyers to consider the strength of the SEC cases against Ripple, Binance, and Coinbase.
  • In response to the bullish session, the technical indicators turned bullish, signaling a return to $0.55.

On Tuesday, XRP rose slid by 4.06%. Partially reversing a 4.79% loss from Monday, XRP ended the day at $0.52984. Despite the bullish session, XRP revisited sub-$0.50 for the second consecutive day.

After a range-bound morning, XRP fell to an early afternoon low of $0.49579. Steering clear of the First Major Support Level (S1) at $0.4835, XRP rose to a final-hour high of $0.53224. However, falling short of the First Major Resistance Level (R1) at $0.5389, XRP eased back to end the day at $0.52984.

XRP Joins Broader Market in Defiance of the SEC Move Against Binance

It was a quiet Tuesday session, with no SEC v Ripple case-related news for investors to consider. The lack of updates left XRP in the hands of the crypto new wires. On Tuesday, the SEC filed a lawsuit against Coinbase (COIN).

Ripple CEO Brad Garlinghouse reacted to the SEC lawsuit against Binance, Binance US, and CEO CZ and Coinbase, saying,

“If it wasn’t already clear, it should be now – Chair Gensler’s laughable ‘pro-innovation’ stance (as he said today, is exactly the opposite. What this also tells me is that the SEC is throwing lawsuits at the wall and hoping they distract from the agency’s FTX debacle.”

Stuart Alderoty, Chief Legal Officer at Ripple, also shared his views, saying,

“The allegations in these suits are just that – unproved. The SEC – despite what Chair Gensler pretends – does not have a magic regulatory wand that it can just wave and say tokens are securities. Looking forward how the Courts and Congress will take this.”

The timing of the Binance and Coinbase lawsuits is an interesting one. On June 13, the SEC must release unredacted versions of the William Hinman speech-related documents. After the FTX ‘debacle,’ SEC Chair Gensler may have to redirect his attention to US lawmaker scrutiny.

However, the US administration will likely view lawsuits favorably.

As investors await the Hinman speech-related documents, the progress of the Digital Asset Market Structure Draft Bill will become more significant.

The Day Ahead

There are no US economic indicators for investors to consider today. The lack of economic indicators will continue to leave XRP in the hands of the crypto news wires.

With the SEC embroiled in lawsuits against three players in the digital asset space, the outcome of the SEC v Ripple could have a more material bearing on the US crypto market.

Therefore, investors should monitor SEC v Ripple-related news that will remain the key driver. We expect SEC v Binance chatter, SEC activity, and Coinbase (COIN) news to move the dial.

XRP Price Action

At the time of writing, XRP was down 0.41% to $0.52766. A mixed start to the day saw XRP rise to an early high of $0.53168 before falling to a low of $0.52562.

XRP sees red.
XRPUSD 070623 Daily Chart

Technical Indicators

Resistance & Support Levels

R1 – $ 0.5428 S1 – $ 0.5063
R2 – $ 0.5557 S2 – $ 0.4828
R3 – $ 0.5922 S3 – $ 0.4464

XRP needs to avoid the $0.5193 pivot to target the First Major Resistance Level (R1) at $0.5428. A move through the Tuesday high of $0.53224 would signal an extended breakout session. However, SEC v Ripple chatter and the crypto news wires must support a breakout session.

In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5557. The Third Major Resistance Level (R3) sits at $0.5922.

A fall through the pivot would bring the First Major Support Level (S1) at $0.5063 into play. However, barring an event-fueled sell-off, XRP should avoid sub-$0.49 and the Second Major Support Level (S2) at $0.4828. The Third Major Support Level (S3) sits at $0.4464.

XRP resistance levels in play above the pivot.
XRPUSD 070623 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent bullish signals.

At the time of writing, XRP sat above the 50-day EMA, currently at $0.51171. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The EMAs delivered bullish signals.

A hold above the 50-day EMA ($0.51171) would support a breakout from R1 ($0.5428) to target R2 ($0.5557). However, a fall through the 50-day EMA ($0.51171) would bring S1 ($0.5063) and the 100-day EMA ($0.49665) into view. A fall through the 50-day EMA would send a bearish signal.

EMAs are bullish.
XRPUSD 070623 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.

Did you find this article useful?