XRP Succumbs to Profit Taking as SEC v Ripple Case Extends into 2023
Key Insights:
- On Saturday, XRP fell by 2.51% to end the session at $0.49332.
- Investors locked in profits from Friday in reaction to news of the SEC v Ripple case extending into 2023.
- The technical indicators are bullish, with XRP sitting above the 50-day EMA, signaling a return to sub-$0.60.
On Saturday, XRP fell by 2.51%. Partially reversing an 11.20% rally from Friday, XRP ended the day at $0.49332.
A mixed start to the day saw XRP rise to an early high of $0.50999. Coming up short of the First Major Resistance Level (R1) at $0.5242, XRP fell to a final-hour low of $0.48984. However, steering clear of the First Major Support Level (S1) at $0.4706, XRP ended the day at $0.49332.
Your capital is at risk
It was a quiet Saturday session, with no material updates from the SEC v Ripple case for investors to consider. However, following Friday’s breakout session, investors locked in profits on Friday’s Court ruling in favor of the SEC’s extension requests.
Court Extension Gives the SEC Time to Combat the Amicus Briefs
This week, the Court granted the SEC’s Motion to Extend the time for all parties to file Reply briefs to November 30, 2022. The Court also granted the SEC motion for all Amicus Brief filings to be submitted by November 11. In recent weeks, the Amicus Brief filings have delivered XRP price support.
Numerous Amicus Briefs demonstrated how XRP does not fall under the SEC’s classification as a security, providing yet more hope of a favorable outcome for XRP holders. However, with the case now set to extend into 2023, investors have some time until a conclusion.
The longer XRP holders have to wait, the more uncertainty.
Defense attorney James Filan spoke out on Saturday, saying,
“I’m sticking to my prediction that District Judge Torres will decide both the Expert Motions and the Summary Judgment motions at the same time – on or before March 31, 2023.”
XRP Price Action
At the time of writing, XRP was down 0.32% to $0.49175. A bearish start to the day saw XRP fall from an early high of $0.49320 to a low of $0.49175.
Technical Indicators
XRP needs to move through the $0.4977 pivot to take a run at the First Major Resistance Level (R1) at $0.5056 and the Saturday high of $0.50999. A return to $0.49 would signal a bullish session.
In the case of an extended rally, the bulls would take a run at the Second Major Resistance Level (R2) at $0.5179 and $0.52. The Third Major Resistance Level (R3) sits at $0.5380.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4854 in play. However, barring an extended sell-off, XRP should avoid sub-$0.4750. The Second Major Support Level (S2) at $0.4776 should limit the downside. The Third Major Support Level (S3) sits at $0.4574.
The 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 $0.47304. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were bullish.
A hold above the 50-day EMA ($0.47304) would give the bulls a run at R1 ($0.5056). However, a fall through S1 ($0.4854) would bring S2 ($0.4776) and the 50-day EMA ($0.47304) into view.