It was a bullish Friday session for XRP and the broader market. With court rulings pending, investors could get edgy as the SEC battles the Hinman ruling.
- On Friday, XRP rose by 1.43%. Despite a second consecutive session in the green, XRP continued to fall short of the week high of $0.3938.
- The SEC v Ripple updates took a backseat as investors responded to US economic indicators that eased fears of a US economic recession.
- The technical indicators remain bullish, with XRP sitting above the 50-day EMA.
On Friday, XRP rose by 1.43%. Following a 0.38% gain on Thursday, XRP ended the day at $0.3764.
A bullish start to the day saw XRP rally to a high of $0.3781 before hitting reverse. XRP broke through the First Major Resistance Level (R1) at $0.3758. The reversal saw XRP slide to a low of $0.3671 before bouncing back to end the day at $0.3764.
While steering clear of the Major Support Levels, XRP broke back through R1.
US economic indicators delivered support, with nonfarm payrolls beating expectations. Wage growth held steady, with the unemployment rate falling, all positive for riskier assets. The upside for XRP was modest relative to the broader market, as investors await pending court rulings from the SEC v Ripple case.
Silence in the Courts Left XRP in the Hands of the Economic Calendar
There were no updates from the SEC v Ripple case to provide direction. On Thursday, the Ripple defense made their most recent move as investors await the Hinman speech-related docs court ruling. The pending rulings include,
- Ruling on the SEC objection to the court denying the SEC’s claim that William Hinman’s speech-related documents fall under the attorney-client privilege.
- A decision on a Ripple request for permission to serve non-party subpoenas to authenticate videos of seven SEC officials’ public remarks
The former SEC Director of the Division of Corporation Finance, William Hinman, sits at the center of both rulings. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.
With no updates for investors to consider, a 528k increase in US nonfarm payrolls was the highlight of the Friday session. The surge followed a 398k rise in June, leaving the unemployment rate at 3.5%
XRP Price Action
At the time of writing, XRP was down 0.56% to $0.3743.
A choppy morning saw XRP rise to an early high of $0.3780 before falling to a low of $0.3735.
XRPUSD 060822 Daily Chart
XRP needs to avoid the $0.3739 pivot to target the First Major Resistance Level (R1) at $0.3806.
XRP would need support from the broader market to break out from the Friday high of $0.3781.
In the case of an extended crypto rally throughout the session, XRP could test the Second Major Resistance Level (R2) at $0.3849 and resistance at $0.3900.
The Third Major Resistance Level sits at $0.3959.
A fall through the pivot would give the bears a look at the First Major Support Level (S1) at $0.3696.
Barring an extended sell-off, XRP should avoid sub-$0.36. The Second Major Support Level (S2) at $0.3629 should limit the downside.
The Third Major Support Level (S3) sits at $0.3519
XRPUSD 060822 HourlyThe EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.3712.
The 50-day EMA broke away from the 100-day EMA, with the 100-day EMA widening the gap from the 200-day EMA, both XRP price positives.
A 50-day EMA widening from the 100-day EMA would support a return to $0.38.
However, a fall through the 50-day EMA ($0.3712) would bring S1 ($0.3696) and the 100-day EMA, currently at $0.3649, into play.