- On Wednesday, XRP extended the winning streak to five sessions, rallying 5.60% to end the day at $0.51399.
- News of SEC Chair Gary Gensler attending a subcommittee hearing on digital assets and sentiment toward the SEC v Ripple case delivered support.
- The technical indicators are bullish, signaling a return to $0.60.
On Wednesday, XRP rose by 5.60%. Following a 7.21% rally on Tuesday, XRP ended the day at $0.54277. XRP revisited the $0.58 handle for the first time since May 2022.
Bullish from the start of the day, XRP rallied from an opening price of $0.51399 to a late morning high of $0.58479. XRP broke through the First Major Resistance Level (R1) at $0.5450 and the Second Major Resistance Level (R2) at $0.5761. However, a bearish second half of the day saw XRP pullback through R2 and R1 to wrap up the day at $0.54277.
XRP Investors Brush aside Intensifying Regulatory Scrutiny
There were no updates from the ongoing SEC v Ripple case on Wednesday to influence investor sentiment. The lack of stats left investors to digest the latest regulatory activity and lawmaker commentary.
News of SEC Chair Gary Gensler giving testimony at a subcommittee hearing on Capitol Hill delivered a bullish morning session. However, investor optimism toward a Ripple victory in the SEC v Ripple case also supported the XRP return to $0.58.
While lawmakers finally get to grill the SEC Chair over its regulations by enforcement approach to the digital asset space, the SEC is coming under increased pressure in the SEC v Ripple case.
The CFTC filing against Binance could affect the strength of the SEC case. Disagreements between the SEC and CFTC over the classification of ETH support the view of the presiding Judge in the Voyager Digital bankruptcy case.
In the Ripple letter to Judge Torres, Ripple wrote,
“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.”
The Day Ahead
Investors should continue tracking the crypto news wires for US lawmaker chatter and regulatory activity. Sentiment toward the SEC v Ripple case will remain the key driver.
Updates from the SEC v Ripple case will move the dial, with rulings on the latest Court filings, the Hinman Documents, and the Summary Judgment Reply Briefs as the focal points.
With Binance and Coinbase (COIN) in the spotlight, related news will also need consideration.
XRP Price Action
At the time of writing, XRP was down 2.39% to $0.52979. A choppy start to the day saw XRP rise to an early high of $0.55143 before falling to a low of $0.52168.
XRP needs to move through the $0.5472 pivot to target the First Major Resistance Level (R1) at $0.5804 and the Wednesday high of $0.58479. A move through the morning high of $0.55143 would signal another bullish session. However, SEC v Ripple chatter would need to support a breakout.
In the case of another extended rally, XRP would likely test resistance at $0.60 but fall short of the Second Major Resistance Level (R2) at $0.6180. The Third Major Resistance Level (R3) sits at $0.6888.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.5096 in play. However, barring an extended broad-based crypto sell-off, XRP should avoid sub-$0.50 and the Second Major Support Level (S2) at $0.4764. The Third Major Support Level (S3) sits at $0.4056.
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 $0.47249. 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 Major Support Levels and the 50-day EMA ($0.47249) would support a breakout from R1 ($0.5804) to target $0.60 and R2 ($0.6180). However, a fall through S1 ($0.5096) would bring S2 ($0.4764) and the 50-day ($0.47249) 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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