Key Insights:
- On Saturday, XRP rose by 2.41% to extend its winning streak to seven sessions.
- Court filings from the SEC v Ripple case drew interest while easing FTX contagion risk supported a return to $0.40.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, signaling a return to $0.45.
On Saturday, XRP rose by 2.41%. Following a 2.86% gain on Friday, XRP ended the day at $0.39505. Significantly, XRP revisited $0.40 for the first time since December 1 and extended the winning streak to seven sessions.
A bullish start to the day saw XRP rally to a mid-morning high of $0.40840 before hitting reverse. XRP broke through the First Major Resistance Level (R1) at $0.3922 and the Second Major Resistance Level (R2) at $0.3986. The reversal saw XRP slide to a late morning low of $0.37633.
However, steering clear of the First Major Support Level (S1) at $0.3738, XRP broke back through R1 to end the day at $0.39505.
Investor Sentiment Toward the SEC v Ripple Case and FTX Delivers $0.40
It was a busy Saturday session for XRP investors. The bullish momentum from Friday continued into Saturday morning. Easing FTX contagion risk delivered a return to $0.40.
Hopes of a favorable outcome to the SEC v Ripple case contributed to the upside. However, the session gain was modest relative to the top ten front runners, suggesting investor caution. On Friday, the parties filed the Daubert Motions. A Daubert motion is a motion that aims to exclude the presentation of expert testimony to a jury.
The filings will turn the focus of attention to the Court, with several Court rulings pending.
While Friday’s filings focused on expert testimony, the William Hinman speech-related documents remain a focal point. A ruling against the SEC to redact selected sections of the speech-related documents could force the SEC into a settlement.
As background, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the speech related to Hinman’s connection with Simpson Thacher, which is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.
Today, there are unlikely to be any updates from the SEC v Ripple case to influence, leaving XRP in the hands of the broader crypto market. With XRP enjoying a seven-day winning streak, XRP could succumb to profit-taking before continuing its move toward $0.45. Unlike many cryptos, XRP has yet to reverse the losses stemming from the collapse of FTX.
XRP Price Action
At the time of writing, XRP was down 1.61% to $0.38870. A bearish start to the day saw XRP fall from an early high of $0.39610 to a low of $0.38511.
Technical Indicators
XRP needs to move through the $0.3933 pivot to target the First Major Resistance Level (R1) at $0.4102. A move through the Saturday high of $0.4084 would signal a bullish session.
In the case of an extended rally, XRP would likely test the Second Major Resistance Level (R2) at $0.4253 and resistance at $0.43. The Third Major Resistance Level (R3) sits at $0.4574.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.3781 in play. However, barring an extended sell-off, XRP should avoid sub-$0.37 and the Second Major Support Level (S2) at $0.3612. The Third Major Support Level (S3) sits at $0.3291.
Court rulings on the SEC v Ripple case would remove the influence of the Support and Resistance levels.
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 $0.36936. After the Friday bullish cross, the 50-day EMA pulled away from the 200-day EMA, with the 100-day EMA converging on the 200-day EMA. The signals were bullish.
A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout from R1 ($0.4102) to target R2 ($0.4253). However, a fall through S1 ($0.3781) would give the bears a run at the 50-day EMA ($0.36936). A fall through the 50-day EMA would be a bearish signal.
