XRP Price Target Remains at $0.60 as Investor Optimism Holds

Key ideas:

  • On Friday, XRP consolidated Thursday’s 22.90% rise with a 4.66% gain to end the session at $0.5073.
  • Optimism towards the SEC v Ripple case remained the main driver.
  • Technical indicators are bullish with XRP hovering above the 50-day EMA, supporting a breakout from $0.55.

On Friday, XRP rebounded 4.66%. Following Thursday’s 22.90% breakout session, XRP ended the day at $0.5073. XRP last ended a session at $0.50 in May.

A bullish morning saw XRP rally to a mid-morning high of $0.55870 before reversing. XRP broke through the first major resistance level (R1) at $0.5247 before sliding to a low of $0.45678. However, avoiding the first major support level (S1) at $0.4197, XRP rebounded to end the day at $0.5073.

Sentiment towards the SEC versus Ripple case remained the main driver, although broader market support also contributed to further decoupling from the NASDAQ 100. On Friday, the NASDAQ 100 fell 1.80%, fears of recession weighing as investors reacted to the private sector. European and US PMIs.

XRP NASDAQ Decoupling 240922 Daily Chart

Investor sentiment towards SEC v Ripple case remains key

Hopes for a favorable outcome to the SEC case against Ripple continue to push XRP back towards $1.00. On Friday, there were no updates to support another breakout session. The lack of news has investors scrutinizing last weekend’s summary judgment motion filings and a shift in focus from documents related to William Hinman’s speech.

The defendants filed their motion for summary judgment before a court ruling on the SEC’s objection to the court’s denial of its motion to protect documents related to William Hinman’s speech under solicitor-client privilege.

Former SEC director of the corporate finance division, William Hinman, is a central figure in the SEC case against Ripple. In a famous 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

Until late July, defendants had the SEC on the defensive, with numerous Hinman-related court rulings in favor of defendants. The SEC had fought to protect the Hinman documents under solicitor-client privilege, with more than six petitions challenging previous court rulings.

The motion to file summary judgment suggests an out-of-court settlement. Previously, the market consensus was that the SEC would do everything in its power to prevent the documents from becoming public records, including a settlement.

XRP Price Action

At the time of writing, XRP was down 0.91% at $0.50268. A mixed start to the day saw XRP hit an early high of $0.51334 before falling to a low of $0.49707.

XRPUSD 240922 Daily Chart

Technical indicators

XRP needs to clear the $0.5076 pivot to target the first major resistance level (R1) at $0.5584 and Friday’s high of $0.5587. Investor sentiment towards the SEC versus Ripple case will need to remain positive to support the current uptrend.

Another extended rally would support a run to $0.60 and the second major resistance level (R2) at $0.6095. The third major resistance level (R3) is located at $0.7114.

A failure through the pivot would leave the first major support level (S1) at $0.4565 in play. Barring an extended sell-off, XRP is likely to avoid sub-$0.45 and the second major support level ( S2) at $0.4057.

The third major support level (S3) is located at $0.3038.

XRPUSD 240922 Hourly Chart

The EMAs and the 4-hour candlestick chart (below) sent a bullish signal.

At the time of writing, XRP was sitting above the 50-day EMA, currently at $0.4152. The 50-day EMA has widened from the 100-day EMA, with the 100-day EMA moving away from the 200-day EMA. The signals were positive prices.

After Monday’s breakout of the 50-day EMA, the current trend supports an XRP breakout of R1 ($0.5584) to target $0.60. However, a slide through S1 ($0.4565) would give the bears a run at the 50-day EMA ($0.4152). The 200-day EMA sits at $0.3684.

XRPUSD 240922 4 hour chart