On Wednesday, XRP extended the winning streak to five sessions, rallying 5.60%, to end the day at $0.51399. News that SEC Chairman Gary Gensler has attended a subcommittee hearing on digital assets. as well as the sentiment towards the SEC vs. Ripple case, provided support. Technical indicators are bullish, signaling a return to $0.60.
On Wednesday, XRP rose 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 since the start of the day, XRP rallied from an opening price of $0.51399 to a late-morning high of $0.58479. XRP broke above 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 pull back through R2 and R1, to close the day at $0.54277.
XRP Investors Brush Aside Intensified Regulatory Scrutiny
There were no updates on the ongoing SEC v. Ripple case on Wednesday to influence investor sentiment. The lack of statistics left investors digesting the latest regulatory activity and comments from lawmakers.
News of SEC Chairman Gary Gensler’s testimony at a subcommittee hearing on Capitol Hill generated a bullish morning session. However, investor optimism toward a Ripple victory in the SEC vs. Ripple case also supported the return of XRP to $0.58.
While lawmakers may finally question the SEC chair on his regulations through the digital asset space enforcement approach, the SEC is under further pressure in the SEC vs. Ripple case.
The CFTC’s filing against Binance could affect the strength of the SEC’s case. Disagreements between the SEC and CFTC over ETH’s classification support the opinion of the judge presiding over Voyager Digital’s bankruptcy case.
Investors should continue to track crypto news wires for conversations by US lawmakers and regulatory activity. The sentiment towards the SEC vs. Ripple will continue to be the key factor. Updates on the SEC vs. Ripple case will move the dial, with rulings on the latest court filings, the Hinman Documents, and Summary Judgment Response Briefs as focal points. With Binance and Coinbase (COIN) in the spotlight, related news will also need to be taken into account.
XRP Price Action – Technical Indicators
XRP was down 2.39% at $0.52979. A choppy start to the day saw XRP rally 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 Wednesday’s high of $0.58479. A move through the morning high of $0.55143 would signal another bullish session. However, the talk SEC vs. Ripple would need to admit a breakout.
In the event of another extended rally, XRP would likely test resistance at $0.60 but would miss the second major resistance level (R2) at $0.6180. The third main resistance level (R3) sits at $0.6888.
The 50-day EMA has broken further 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 the major support levels and the 50-day EMA ($0.47249) would support a break of R1 ($0.5804) to target $0.60 and R2 ($0.6180). However, a drop-through S1 ($0.5096) would bring S2 ($0.4764) and the 50-day ($0.47249) into play. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda