XRP fails as investors await court ruling

XRP fails as investors await court ruling

Basic information:

  • XRP broke the broader market trend on Monday, falling 1.17%. On Sunday, XRP fell in the top ten cryptocurrencies with a rise of 6%.

  • Investors are awaiting a court ruling on Hinman speech-related documents that could prove crucial to the case.

  • Technical indicators remain bullish, with XRP below the 50-day EMA.

On Monday, XRP fell 1.17%. Reversing a 6.12% gain from Sunday, the XRP closed the day at $ 0.3222.

XRP saw red despite support for the wider encryption market. The total capitalization of the cryptocurrency market increased by $ 4.37 billion to consolidate a profit of $ 62.6 billion on Sunday.

The lack of news on the SEC v Ripple case has left XRP under pressure, with XRP still close to this year’s low of $ 0.2868.

From the SEC deposits on Thursday and FridayIt is now up to the courts to issue a key decision in the SEC v Ripple case.

Court ruling on documents related to Hinman speech pending

Following the SEC filing on June 14 for documents related to William Hinman’s speech, the parties and markets are now awaiting a court decision on whether the documents belong to the client-lawyer privilege.

The decision could substantially affect the direction of the case.

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

Ahead of a court hearing scheduled for June 7, the SEC submitted at least six proposals seeking to protect Hinman speech-related documents under the auspices of a solicitor.

However, the focus on William Hinman does not end there.

In December, Empower Oversight, a non-profit government watchdog, filed a lawsuit against the SEC. The lawsuit alleges that William Hinman received millions of dollars from his former employer, Simpson Thacher.

Simpson Thacher is a member of a team promoting Enterprise Ethereum. Empower Oversight claimed that Hinman’s speech sparked an ETH price spree before the SEC sued Ripple Lab, claiming that XRP was a title.

To make matters worse for the SEC, Hinman continued to meet with Simpson Thacher despite warnings from the SEC ethics team.

In April, Empower Oversight forced the SEC to release emails about the Ripple case. These emails imply that Hinman continued to meet with Simpson Thacher, despite warnings from the SEC ethics team.

Although the court ruling could substantially affect the SEC’s position, the story may not end there.

Hinman’s influence on XRP and ETH could lead to further research. The SEC’s claim that Hinman was under the legal advice of the SEC Adviser in preparation for his 2018 speech makes it even more interesting.

XRP Price Action

At the time of writing, XRP is up 0.43% at $ 0.3236.

A mixed start to the day saw the XRP fall to an early low of $ 0.3182 before reaching a high of $ 0.3261.

XRP left Major Support and Resistance Levels untested early on.

Daily chart. XRPUSD 210622

Daily chart. XRPUSD 210622

XRP Technical Indicators

Avoiding a fall through the $ 0.3211 axis will bring Monday’s high of $ 0.3282 and the First Major Resistance Level to $ 0.3293. XRP would need the wider encryption market to support a breakout of the $ 0.3261 high.

In the case of an extended encryption rally, XRP could test the Second Level of Major Resistance at $ 0.3363 and the resistance at $ 0.34. The Third Major Resistance Level is at $ 0.3515.

A drop in the pivot would bring the First Major Support Level to $ 0.3141. Excluding extended selling throughout the afternoon, XRP should be avoided below $ 0.30. The second major support level at $ 0.3059 should limit the downside.

Hourly chart XRPUSD 210622

Hourly chart XRPUSD 210622

The EMA and the 4-hour candlestick chart (below) send a drop signal. At the time of writing, XRP is below the 50-day EMA, currently at $ 0.3263. Today, the 50-day EMA leveled off at the 100-day EMA. The 100-day EMA fell from the 200-day EMA, XRP negative.

A return to $ 0.33 would support a course in the 100-day EMA, currently at $ 0.3463.

XRPUSD 210622 4-hour chart

XRPUSD 210622 4-hour chart

While the technicalities need to be considered, a court decision will weaken the levels of support or resistance depending on the decision.

This article was originally published in FX Empire

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