On Wednesday, XRP joined the broader market in the green, rallying 4.95% to end the day at $0.40119. Regulatory risk easing, support from US lawmakers, as well as SEC vs. Ripple updates, led to a bullish session.

On Wednesday, XRP rose 4.95%. Following a 3.13% gain on Tuesday, XRP ended the day at $0.40119. XRP closed the day at $0.40 for the first time since February 7.

A bearish start to the day saw XRP drop to an early morning low of $0.37675. Pulling away from the first major support level (S1) at $0.3702, XRP rallied to a late high of $0.40236. XRP broke above the first major resistance level (R1) at $0.3890 and the second major resistance level (R2) at $0.3958 to end the day at $0.40119.

US Lawmakers Raise Question Marks over Gensler’s Tactics

Updates on the SEC versus Ripple case generated interest on Wednesday. Defense attorney James Filan shared the last statement, as follows:

“Dr Roslyn Layton, PhD. has filed an Intervention Motion to ask the Court for access to the Hinman Speech Papers.”

As in the case of Empower Oversight v SEC, the filing highlighted potential conflicts of interest, because Hinman had a financial stake in promoting Ethereum over competing coins like XRP.

Former SEC Division of Corporate Finance head William Hinman has said that Bitcoin (BTC) and Ethereum (ETH) are not securities. 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.

Prior to the filing of the SEC’s summary judgment response brief, the SEC had made at least six attempts to protect the documents under attorney-client privilege. Speaking from Davos in January, Ripple CEO Brad Garlinghouse shared his views on the documents related to the speech, saying the following:

“When they come out, I think you’ll see more things like, how could the SEC possibly decide to bring a case against Ripple, given what they were saying inside their own walls?”

XRP Price Action – Technical Indicators

XRP needs to avoid a drop through the $0.3934 pivot to target the first major resistance level (R1) at $0.4101. A move through the morning high of $0.40447 would indicate a bullish session. However, the broader crypto market and SEC v Ripple talk would need to support a breakout.

A fall through the pivot would bring the first major support level (S1) into play at $0.3845. However, barring a widespread crypto extended selloff, XRP should avoid levels below $0.38 and the second major support level (S2) at $0.3678. The third major support level (S3) sits at $0.3422.

A bearish cross of the 50 day EMA through the 200 and 100 day EMAs would support a break of R1 ($0.4101) to target R2 ($0.4190) and $0.4250. However, a drop to the 100-day EMA ($0.39042) and 200-day EMA ($0.39023) would bring the 50-day EMA ($0.38574) and S1 ($0.3845) into play. A drop through the 50 day EMA would send a bearish signal.

By Audy Castaneda

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