XRP Finds Support as Investors Await Court Ruling on the Hinman Docs

Key Insights:

  • XRP rose by 2.15% on Wednesday, with the appetite for riskier assets delivering support.
  • Updates from the SEC v Ripple case had a muted impact on XRP as investors await the court ruling on Hinman’s 2018 speech-related documents.
  • Technical indicators are bearish, with XRP sitting at the 100-day EMA.

On Wednesday, XRP rose by 2.15%. Reversing a 0.98% decline from Tuesday, XRP ended the day at $0.3319.

A bearish morning saw XRP fall to a low of $0.3194. Steering clear of the First Major Support Level at $0.3149, XRP rallied to a high of $0.3335.

XRP broke through the First Major Resistance Level at $0.3326 before falling back to end the day at sub-$0.3320.

US economic indicators delivered NASDAQ 100 support, which provided XRP and the broader market the upside on the day.

Fears of US economic recession eased this week, with the all-important ISM Manufacturing PMI falling modestly from 55.9 to 55.3. Economists had forecast a decline to 54.3.

However, crude oil prices reflected investor jitters over the economic outlook and demand, with WTI Crude sliding by 3%. The market movements reinforced the current inverse correlation between cryptos and crude.

XRP-NASDAQ-WTI 070722 15 Minute chart

While XRP remained in the hands of broader market risk sentiment on Wednesday, the ongoing SEC v Ripple case remains the key driver.

XRP Brushed Aside News Updates from the SEC v Ripple Case

This week, the SEC was back in action, filing motions to pressure the Ripple defense team.

Overnight, defense attorney James Filan shared the latest SEC motion to the courts, saying,

“The SEC has sought permission to file one omnibus (big) motion to exclude or limit expert testimony, up to 120 pages long. Ripple Defendants do not object provided that they will be allowed the same page limit for their response in opposition.”

The latest SEC may be an attempt to water down expert testimony submissions by the Ripple Defense team.

According to the SEC filing,

“The SEC intends to file motions to exclude or limit the testimony of 10 expert witnesses who were retained by Defendant, Ripple Labs, Inc, and/or Individual Defendants, Christian A. Larsen and Bradley Garlinghouse.”

The latest filing had a muted impact. Investors await a court ruling on whether Hinman’s 2018 speech-related documents fall under the attorney-client privilege.

In 2018, the former SEC Director of the Division of Corporation Finance said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

XRP Price Action

At the time of writing, XRP was up 0.30% to $0.3329.

A mixed start to the day saw XRP fall to a low of $0.3308 before rising to a high of $0.3345.

XRP left the Major Support and Resistance Levels untested.

XRPUSD 070722 Daily Chart

Technical Indicators

Avoiding the $0.3283 pivot would bring the First Major Resistance Level at $0.3371 into play.

XRP would need the support of the broader market to breakout from the Wednesday high of $0.3335.

In the case of an extended crypto rally, XRP could test resistance at $0.34 and the Second Major Resistance Level at $0.3424. The Third Major Resistance Level sits at $0.3565.

A fall through the pivot would bring the First Major Support Level at $0.3230 into play. Barring an extended sell-off, XRP should avoid sub-$0.3150 and the Second Major Support Level at $0.3142. The Third Major Support Level sits at $0.3001.

A court ruling on the Hinman speech-related documents would mute the influence of the Support and Resistance Levels.

XRPUSD 070722 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) begin to turn bullish.

At the time of writing, XRP sat above the 100-day EMA, currently at $0.3315. Today, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA flattened on the 200-day EMA, XRP price positive.

Holding above the 100-day EMA would bring the Major Resistance Levels into Play. A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $0.35.

However, another XRP pullback from the 100-day EMA would bring the Major Support Levels into play.

XRPUSD 070722 4-Hourly Chart

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