XRP Takes a Dive Ahead of Wednesday’s SEC v Ripple Court Date
On Sunday, XRP rose by 5.07%. Following a 0.92% gain from Saturday, XRP ended the week down by 21% to $0.4475.
Stablecoin market angst, stemming from the TerraUSD (UST) de-peg with the dollar, sent the crypto market into the deep red.
Market reaction to Ripple’s court submission was upbeat ahead of the SEC’s submission this Wednesday.
On Sunday, XRP. Rose by 5.07%. Following a 0.92% gain from Saturday, XRP ended the week down 21% to $O0.4475.The downside came despite a positive reaction to Ripple’s Friday court submission on the SEC v Ripple case.
Last week, Ripple filed a reply to the SEC Attorney-Client Privilege brief relating to William Hinman’s 2018 speech and notes.
William Hinman, former SEC Director of the Division of Corporation Finance, remains a central figure in the SEC v Ripple case.
In a 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The SEC is looking to shield documents and emails relating to internal discussions and Hinman’s famous speech.
SEC to Submit a Reply to Ripple’s Friday Response on Wednesday
This Wednesday, the SEC is to respond to Ripple’s reply to the SEC brief. The Hinman files have become so pivotal that Ripple defense lawyer Matthew Solomon noted the SEC making at least six “filings in opposition to Defendant’s August 10, 2021 motion to compel.”
Last Friday, Ripple delivered a compelling argument. It remains to be seen, however, whether the SEC can convince the judge to do a complete about turn on the issue of attorney-client privilege.
In January and in April, the court ruled in favor of Ripple, forcing the SEC into requests for extensions and additional motions.
With the court ruling likely key for both sides, either side may contest any court ruling.
For the crypto market, an outcome in favor of the SEC would test XRP support ahead of any further motions.
XRP Price Action
At the time of writing, XRP was down 7.22% to $0.4152. A bearish morning saw XRP slide to an early morning low of $0.4084 before finding support.
XRP will need to move through the First Major Support Level at $0.4247 and the $0.4371 pivot to target the First Major Resistance Level at $0.4595. XRP would need broader crypto market support to return to $0.45 levels.
In the event of an extended rally, XRP should test the Second Major Resistance Level at $0.4717. The Third Major Resistance Level sits at $0.5062.
Failure to move through the First Major Support Level at $0.4247 would bring the second Major Resistance Level at $0.4026 into play.
Barring another extended sell-off throughout the day, XRP should avoid sub-$0.40. The Third Major Support Level sits at $0.3678.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, XRP sat below the 50-day EMA, currently at $0.4608. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, XRP negative.
A move through the 50-day EMA would support a return to $0.50. While sentiment from the broader crypto market will influence, this week’s submissions and any commentary will be the key.
This article was originally posted on FX Empire
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