XRP Struggles as the Market Focus Returns to the SEC v Ripple Case

Key Insights:

• On Tuesday, XRP found support from the broader market to end the day up by 3.6%.
• The upside came despite bearish sentiment across the crypto market and a pivotal week in the SEC v Ripple case.
• Later today, the SEC will reply to Ripple’s response to the SEC brief on the William Hinman speech-related documents.

On Tuesday, XRP rose by 3.58%. Partially reversing a 5.68% loss from Monday, XRP ended the day at $0.4372. The upside came in spite of the SEC v Ripple case moving into a pivotal week for both sides.

In recent weeks, court motions and rulings in the SEC v Ripple case have provided XRP with little price support. XRP last tested resistance at $0.45 on May 15, with a day high of $0.449 before the latest pullback to sub-$0.42 levels.

While several motions have gone Ripple’s way, the SEC remains well placed and continues in its attempts to shield William Hinman’s 2018 speech-related documents and emails.

In a 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

William Hinman, former SEC Director of the Division of Corporation Finance, remains a central figure in the SEC v Ripple case.

SEC Due to Respond to Ripple Reply to SEC Brief on Hinman Documents

Last week, Ripple filed a reply to the SEC brief relating to William Hinman’s 2018 speech documents and Attorney-Client Privilege.

A well-worded reply provided XRP price support last week but not by enough to suggest a Ripple victory in sight.

One concern for XRP investors is that the Ripple defense team has opposed at least six SEC motions filed in opposition to Ripple’s August 10, 2021, motion to compel.

Following the August 2021 motion, the court ruled in favor of Ripple on two occasions, and yet, the SEC continues to battle for Attorney-Client Privilege.

The current sequence of responses comes following a court ruling in favor of the SEC, allowing the SEC to file a brief in connection with the SEC’s attorney-client privilege claims regarding the Hinman speech documents.

Today, the SEC is due to respond to Ripple’s reply, after which the court will deliver a ruling. The ruling could prove to be pivotal to the case and XRP price action near-term.

XRP Price Action

At the time of writing, XRP was down 2.24% to $0.4274. A mixed start to the day saw XRP rise to an early morning high of $0.4418 before sliding to a low of $0.4246.

Technical Indicators

XRP will need to move through the $0.4312 pivot to target the First Major Resistance Level at $0.4454. XRP would need broader crypto market support to break out from the morning high of $0.4418.

In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.4538. The Third Major Resistance Level sits at $0.4763.

Failure to move through the pivot at $0.4312 would bring the First Major Support Level at $0.4229 into play.

Barring another extended sell-off throughout the day, XRP should avoid sub-$0.40. The Second Major Support Level at $0.4086 should limit the downside.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sits below the 50-day EMA, currently at $0.4515. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, XRP negative.

A move through the 50-day EMA would support a return to $0.50. While sentiment from the broader crypto market will influence, this week’s SEC submission and any court ruling will be the key drivers.