- On Saturday, XRP bucked a bearish market trend, rising by 4.21% to end the day at $0.44365.
- Investor hopes for a Ripple win in the ongoing SEC v Ripple delivered a bullish session.
- The technical indicators remain bullish, signaling a return to $0.50.
On Saturday, XRP rallied by 4.21%. Reversing a 4.20% loss from Friday, XRP ended the day at $0.46513. XRP avoided sub-$0.41 for the third consecutive session and the third time since November 2022.
A mixed start to the day saw XRP fall to an early low of $0.42341 before making a move. Steering clear of the First Major Support Level (S1) at $0.4122, XRP rallied to a late afternoon high of $0.46513. XRP broke through the First Major Resistance Level (R1) at $0.4418 to end the day at $0.44365.
Optimism Mutes Banking Sector Jitters and Regulatory Uncertainty
It was a quiet Saturday, with no updates from the ongoing SEC v Ripple case to influence investor sentiment. The lack of updates left investors to consider the latest Court filings.
On Monday, Ripple filed a letter citing rulings from the Voyager Digital bankruptcy proceedings to support its fair notice defense. Comments from presiding Judge Wiles in response to SEC objections reignited hope of a Ripple victory.
The SEC’s response to the letter supported the market optimism, with the US regulatory targeting the defense. In response to the Ripple letter supporting its fair notice defense, the SEC had this to say about the Ripple filing,
“Defendants shamelessly mischaracterize the Voyager bankruptcy court’s statements and pluck choice phrases out of context in a misguided attempt to boost their unavailing fair notice defense.”
Ripple referenced several rulings from the Voyager Digital bankruptcy case. However, one paragraph may have riled the Securities and Exchange Commission. The letter to Judge Torres stated,
“Judge Wiles found that cryptocurrency market participants operate in a regulatory environment that at best can be described as highly uncertain, in which regulators themselves cannot seem to agree as to whether cryptocurrencies are commodities that may be subject to regulation by the CFTC or whether they are securities that are subject to securities laws, or neither, or even on what criteria should be applied in making the decision.”
Judge Wiles went on to say,
“An uncertainty has persisted despite the fact that cryptocurrency exchanges have been around for a number of years.”
Mid-week Ripple President Monica Long shared the market optimism of a Ripple win.
As investors consider the latest filings, rulings on the Hinman Documents could also materially influence the direction of the case.
The Day Ahead
Updates from the SEC v Ripple case will remain the focal point. Comments relating to this week’s filings and Court rulings on the Hinman Documents and the Summary Judgment Reply Briefs could also materially affect the US crypto regulatory landscape.
However, a lack of SEC v Ripple case updates would leave regulator and lawmaker chatter to draw interest, with Binance and Coinbase (COIN) in the spotlight.
XRP Price Action
At the time of writing, XRP was 1.32% to $0.44952. A mixed start to the day saw XRP fall to an early low of $0.44104 before rising to a high of $0.44972.
XRP needs to avoid the $0.4441 pivot to target the First Major Resistance Level (R1) at $0.4647 and the Saturday high of $0.46513. A return to $0.45 would signal a bullish session. However, the broader crypto market and 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 $0.4858 and resistance at $0.50. The Third Major Resistance Level (R3) sits at $0.5275.
A fall through the pivot would bring the First Major Support Level (S1) at $0.4230 into play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.41 and the Second Major Support Level (S2) at $0.4023. The Third Major Support Level (S3) sits at $0.3606.
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 $0.42035. 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 ($0.42035) would support a breakout from R1 ($0.4647) to target R2 ($0.4858) and $0.50. However, a fall through S1 ($0.4230) and the 50-day ($0.42035) would bring the 100-day EMA ($0.40429) and S2 ($0.4023) into play. A fall through the 50-day EMA would send a bearish signal.
This article was originally posted on FX Empire
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