On Tuesday, XRP rose 25.25%, to end the day at $0.46841. Market reaction to the latest filing in the ongoing case SEC vs. Ripple facilitated the work session. Technical indicators remained bullish, signaling a return to $0.50.
On Tuesday, XRP rose 25.25%. Reversing a 3.26% loss on Monday, XRP ended the day at $0.46841. The breakout session saw XRP test resistance at $0.50 for the first time since November 2022.
A mixed start to the day saw XRP fall to as low as $0.37325 in the first hour, before making a move. Pulling away from the first major support level (S1) at $0.3666, XRP rallied to a late high of $0.49265. XRP broke above major resistance levels, to test resistance at $0.50 before pulling back, to end the day at $0.46841.
Presentation of Ripple in the Case SEC vs. Ripple Boosted Optimism of a Ripple Victory
Updates to the ongoing SEC vs. Ripple hosted a special session on Tuesday. As investors await rulings on the Hinman Documents and Summary Judgment Response Briefs, the Ripple Defendants have filed a new submission in support of their fair notice defense.
According to the latest filing, the SEC opposed Voyager’s plans to sell its assets, including VGX, to Binance.US. Furthermore, the SEC objected to the involvement of Binance.US, with the SEC stating that Binance.US is an unregistered exchange. The filing before Judge Torres noted that the basis for Judge Wiles rejecting the SEC’s objections supported many of the arguments the defendants had made in the filing.
This afternoon, all eyes will be on the Fed. Following the collapse of Silicon Valley Bank and Signature Bank (SBNY), markets are betting on a 25-basis point Fed rate hike, a post-March pause, as well as a rate cut in the middle of the year.
Assuming no surprise 50-basis point Fed rate hike, the focus should be on the FOMC projections and Fed Chairman Powell.
While the Fed’s policy decision is the main event, investors should monitor updates on the SEC vs. Ripple. However, the lack of news of the SEC vs. Ripple would let regulators and lawmakers talk about influence, along with news related to Binance and FTX.
XRP Price Action – Technical Indicators
XRP was down 1.46% to $0.46157. A mixed start to the day saw XRP rally to an early high of $0.47498, before falling to a low of $0.45903.
XRP needs to avoid the $0.4448 pivot to target the first major resistance level (R1) at $0.5163. A move through Tuesday’s high of $0.49265 would indicate a bullish session. However, the broader crypto market and the SEC vs. Ripple would need to support a breakout.
In the event of another extended rally, XRP would likely test resistance at $0.55, but would miss the second major resistance level (R2) at $0.5642. The third main resistance level (R3) sits at $0.6836.
The 50-day EMA has turned away from the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA. The EMAs delivered bullish signals.
A hold above S1 ($0.3969), and the 50-day EMA ($0.38994), would support a break of R1 ($0.5163) to the target of R2 ($0.5652). However, a drop through S1 ($0.3969) and the 50-day ($0.38994) would bring the 100-day ($0.38307) and 200-day ($0.38257) EMAs into play. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
