XRP to Retarget $0.55 on SEC v Ripple News and SEC Infighting

Key Insights:

• On Friday, XRP ended the day up 2.00% to $0.52358.
• SEC v Ripple case updates and the broader crypto market delivered a bullish session.
• The technical indicators are bullish, signaling a run at $0.60.

On Friday, XRP rose by 2.00%. Following a 1.65% gain on Thursday, XRP ended the day at $0.51358. XRP revisited the $0.54 handle for the first time since March 31.

A mixed start to the day saw XRP fall to a first-hour low of $0.51176. Steering clear of the First Major Support Level (S1) at $0.5047, XRP surged to a mid-morning high of $0.54760. XRP broke through the Major Resistance Levels before a fall back to sub-$0.52. However, finding late support, XRP broke back through R1 ($0.5190) and briefly through R2 ($0.5246) before ending the day at $0.52358.

Ripple Response to the SEC and SEC Activity Contribute to a Choppy Session

The ongoing  SEC v Ripple case was in the spotlight for a second consecutive session, with the Ripple defense team wasting no time responding to the SEC filing.

On Thursday, the Ripple Defense team filed the response, stating,

“The SEC’s boast of the “unbroken chain of district court decisions rejecting fair notice defenses on summary judgment, in SEC enforcement actions, is irrelevant.”

The defense team went on to say,

“The Court has already rejected the SEC’s reliance on these cases. None of those other cases dealt with XRP and the facts Defendants adduced in support of their fair notice defense. The closest case, Upton – which the SEC excludes from its list because it is an appellate decision – is binding precedent and ruled in favor of the defendant’s fair notice defense. The Court should do the same, and Commonwealth does not change that.”

Investors responded favorably to the response, with XRP striking a session high.

However, it was a choppy afternoon session. Disappointing US economic indicators, hawkish Fed chatter, and SEC activity tested buyer appetite.

SEC Commissioner Hester Peirce had the final say, responding to an SEC move to incorporate the DeFi space into its remit.

In an official SEC statement, Peirce said,

“Rather than embracing the promise of new technology as we have done in the past, here we propose to embrace stagnation, force centralization, urge expatriation, and welcome extinction of new technology. Accordingly, I dissent.”

The Day Ahead

SEC v Ripple case-related news will continue to be the focal point. Investors should track the crypto news wires and Twitter for an SEC reaction to the Ripple response to the SEC filing.

However, a lack of SEC v Ripple case-related news will leave SEC and CFTC activity in the spotlight. Binance and Coinbase (COIN)-related commentary will also move the dial.

Following the SEC’s Friday press release, US lawmaker chatter will also need consideration before the April 18 digital assets sub-committee hearing.

XRP Price Action

At the time of writing, XRP was down 0.69% to $0.51998. A mixed start to the day saw XRP rise to an early high of $0.52368 before falling to a low of $0.51963.

Technical Indicators

XRP needs to move through the $0.5276 pivot to target the First Major Resistance Level (R1) at $0.5435 and the Friday high of $0.54760. A return to $0.5350 would signal a bullish session. However, SEC v Ripple chatter would need to support a breakout.

In the case of another extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.5635. The Third Major Resistance Level (R3) sits at $0.5993.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5077 in play. However, barring an extended sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4918. The Third Major Support Level (S3) sits at $0.4560.

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 $0.51206. The 50-day EMA pulled further 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 ($0.51206) would support a breakout from R1 ($0.5435) to target R2 ($0.5635). However, a fall through the 50-day EMA ($0.51206) would bring S1 ($0.5077) and the 100-day EMA ($0.50176) into view. A fall through the 50-day EMA would send a bearish signal.