XRP Bulls to Target $0.40 as SEC v Ripple Case Nears Its Conclusion


Key ideas:

  • On Sunday, XRP ended a seven-day losing streak, falling 2.59% to end the day at $0.38483.
  • Bearish sentiment from the broader crypto market weighed on as investors await rulings in the SEC v Ripple case.
  • However, the technical indicators are bullish, with XRP above the 50 day EMA indicating a return to $0.45.

On Sunday, XRP fell 2.59%. Reversing a 2.41% gain on Saturday, XRP ended the week up 11.70% at $0.38483. Despite the bearish session, XRP avoided sub-$0.37 for the second session in a row.

On a bearish morning, XRP fell from an early high of $0.3961 to a midday low of $0.37997. However, moving away from the first major support level (S1) at $0.3781, XRP tested resistance at $0.39 before falling back below $0.3850.

XRP Joins Crypto Market in the Red as Investors Lock in Gains

It was a quiet Sunday session, with no updates on the current session. SEC vs. Ripple case to provide direction. While hopes of a favorable outcome for the case continue to support prices, the broader crypto market dragged XRP into the red on Sunday.

Investors locked in profits to end a seven-day winning streak. Despite the optimism, uncertainty remains about the outcome of the case, with several court rulings pending. However, the courts can wait until the parties and third parties file their final motions on January 18.

By Wednesday, all parties and non-parties must proceedings oppositions to the Motions to seal that they are not a party.

Among the pending rulings is a decision on the SEC’s motion to redact the content of documents related to William Hinman’s speech. Another Court ruling against the SEC could force the SEC to settle.

As background, former SEC Division of Corporate Finance director William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not values. The contentious issue with the speech related to Hinman’s connection to Simpson Thacher, who is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Today, it is unlikely that there will be any SEC v Ripple case updates to influence, with the US on vacation. The lack of updates would leave XRP in the hands of the broader crypto market. After Sunday’s pullback, an uptrend is likely to continue as FTX contagion risk subsides and Fed fears ease.

XRP Price Action

At the time of writing, XRP was up 1.57% to $0.39089. A bullish start to the day saw XRP rally from an initial low of $0.38466 to a high of $0.39171.

XRPUSD 160123 Daily Chart

technical indicators

XRP needs to avoid a drop through $0.3870 pivot to target the first main resistance level (R1) at $0.3940 and Sunday’s high of $0.3961. A return to $0.3950 would signal a bullish session. However, the broader crypto market would need to support a breakout.

In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4031. The third main resistance level (R3) sits at $0.4192.

A fall through the pivot would bring the first major support level (S1) into play at $0.3778. However, barring a prolonged sell-off, XRP should avoid going below $0.37. The second major support level (S2) at $0.3708 should cap the downside. The third major support level (S3) sits at $0.3547.

Court rulings in the SEC v Ripple case would remove the influence of Support and Resistance levels.

XRPUSD 160123 Hourly Chart

He EMA and the 4-hour candlestick chart (below) sent a bullish signal.

At the time of writing, XRP was sitting above the 50-day EMA, currently at $0.37256. The 50 day EMA has turned away from the 200 day EMA, with the 100 day EMA crossing the 200 day EMA. The signals were bullish.

A hold above the 50-day EMA ($0.37256) would support a break of R1 ($0.3940) to the target of R2 ($0.4031). However, a drop through S1 ($0.3961) would give the bears a run at the 50-day EMA ($0.37256) and S2 ($0.3708). A drop through the 50 day EMA would be a bearish sign.

XRPUSD 160123 4-hour chart