XRP Price Action Turns Bullish Ahead of SEC v Ripple Court Session

Key Insights:

  • On Wednesday, XRP slid by 3.05% to end the day at $0.45123.
  • A combination of bearish sentiment across the broader crypto market and uncertainty toward the SEC v Ripple case weighed.
  • The technical indicators remain bearish, with XRP sitting below the 200-day EMA, signaling a fall to sub-$0.40.

On Wednesday, XRP fell by 3.05%. Following a 3.12% slide on Tuesday, XRP ended the day at $0.45123. Notably, XRP ended the day at sub-$0.40 for the ninth consecutive session.

A mixed start to the day saw XRP rise to an early high of $0.46642. Falling short of the First Major Resistance Level (R1) at $0.4803, XRP slid to a late low of $0.44790. XPP fell through the First Major Support Level (S1) at $0.4541 to visit sub-$0.45 for the first time since October 13. However, steering clear of the Second Major Support Level (S2) at $0.4427, XRP found late support to end the day at $0.45123.

Updates from the ongoing SEC v Ripple case provided little direction, leaving uncertainty towards the case and Fed Fear to remain key drivers.

SEC and Ripple Scheduled for a Court Session on Thursday

Earlier this week, the SEC and the Defendants filed all opposition materials relating to the Summary of Judgment Motions. According to CryptoLaw,

“Hundreds of exhibits were filed last night with the responses by each side, and we can’t predict exactly when or how much will be unsealed.”

While the market awaits the unsealing of the docs, the SEC and the Defendants are due to meet today to identify redaction requests for the opposition briefs. Updates from today’s session and the unsealing of the opposition to Summary Judgment Motions will draw plenty of interest.

Recently, the SEC has faced a series of rulings against them. The Defendants will need to keep the momentum going and force the SEC to turn over the Hinman docs to push the SEC further into the corner.

The SEC continues to withhold the Hinman docs despite the latest Court overrule. The consensus is that the content could adversely influence the SEC’s case and hopes of regulating the digital asset space.

In a famous 2018 speech, Division of Corporation Finance, William Hinman, said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was up 2.16% to $0.46098. A bullish start to the day saw XRP rise from an early low of $0.45007 to a high of $0.46169.

XRPUSD 201022 Daily Chart

Technical Indicators

XRP needs to avoid the $0.4552 pivot to take a run at the First Major Resistance Level (R1) at $0.4625 and the Wednesday high of $0.46642. Updates from the SEC v Ripple case will have to be in favor of the defendants to support a breakout session.

In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.4737 and $0.48. The Third Major Resistance Level (R3) sits at $0.4922.

A fall through the pivot would bring the First Major Support Level (S1) at $0.4439 into play. However, barring an extended sell-off, XRP should avoid sub-$0.44 and the Second Major Support Level (S2) at $0.4367. The Third Major Support Level (S3) sits at $0.4181.

XRPUSD 201022 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

At the time of writing, XRP sat below the 200-day EMA, currently at $0.45793. The 50-day EMA crossed through the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA. The signals were bearish.

Following the bearish cross, XRP needs to move through the 200-day EMA ($0.45793) to target R1 ($0.4625) and $0.47. Failure to move through the 200-day EMA ($0.45793) would bring S1 ($0.4439) into play.

XRPUSD 201022 4 Hourly Chart