On Wednesday, XRP bucked the broader trend of the crypto market, rising 0.94% to end the day at $0.39509. The SEC vs. Ripple optimism continued to provide support for the XRP price, while the positive reaction to the FOMC meeting minutes delivered a gain of 0.94%. Technical indicators turned bullish, signaling a return to below $0.40.
On Wednesday, XRP rose 0.94%. Partially reversing a 1.73% loss on Tuesday, XRP ended the day at $0.39749. Despite the bullish session, XRP failed to reach the $0.40 level for the first time in three sessions.
A mixed start to the day saw XRP fall to an early morning low of $0.38350 before making a move. Finding support at the first major support level (S1) at $0.3853, XRP rallied to an early afternoon high of $0.39749. However, failing to reach the first major resistance level (R1) at $0.3999, XRP fell back to below $0.39 before closing the day at $0.39509.
SEC v Ripple News Offers XRP Price Support
It was a busy mid-week session, with the SEC vs. Ripple news drawing a lot of investor interest. Dr. Roslyn Layton was back in the news by filing an amended Motion to Intervene request for access to documents related to Hinman’s speech.
The contentious issue with the speech relates to Hinman’s connection to Simpson Thacher. Simpson Thacher is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.
The SEC was unable to prevent the documents from reaching the defendants’ hands. However, the SEC filed a motion to redact the content of the speech. The consensus is that the SEC may prefer to settle the case against Ripple rather than allow the documents to enter the public arena.
XRP Price Action – Technical Indicators
A mixed start to the day saw XRP rally to an early high of $0.39314 before falling to a low of $0.39129.
XRP needs to avoid the $0.3920 pivot to target the first major resistance level (R1) at $0.4006. A return to $0.40 would signal a bullish session. However, the broader crypto market and SEC v Ripple talk would need to support a breakout.
In the event of another prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4060 and resistance at $0.41. The third main resistance level (R3) sits at $0.4200.
The EMAs and the 4-hour candlestick sent a bearish signal. XRP was sitting above the 100-day EMA, currently at $0.39194. The 50-day EMA has converged to the 100-day EMA, and the 100-day EMA has broken out from the 200-day EMA. The signals were bullish.
A bullish cross of the 50-day EMA through the 100 day EMA would support a break of R1 ($0.4006) to target R2 ($0.4060) and $0.41. However, a drop through the EMAs would give the bears a run to $0.3866 and lower support levels at $0.38. A drop through the 50-day EMA would send a bearish signal.
By Audy Castaneda
