Signal price

XRP price target moves to $0.60 as investor optimism rises

Key ideas:

  • On Thursday, XRP jumped 22.90% to end the session at $0.48469.
  • Optimism towards the SEC v Ripple case drove XRP to its highest level since May 2022.
  • Technical indicators are bullish with XRP hovering above the 50-day EMA, supporting a breakout from $0.50.

On Thursday, XRP jumped 22.90%. Reversing a 4.85% decline from Wednesday, XRP ended the day at $0.48469.

Bullish throughout Thursday’s session, XRP moved from an early low of $0.39464 to a late high of $0.49964. XRP broke through the first major resistance level (R1) at $0.4250 and the second major resistance level (R2) at $0.4556. However, resistance at $0.50 stalled XRP after a run at the third major resistance level (R3) at $0.5075.

Sentiment towards the SEC vs. Ripple case boosted demand for XRP, which continued to decouple from riskier assets. On Thursday, the NASDAQ 100 fell 1.37%, weighed on Fed policy and the economic outlook.

XRP NASDAQ Decoupling 230922 Daily Chart

Hopes for a Favorable Settlement by December Delivered XRP Breakout

After Wednesday’s Fed-fueled pullback, investors’ attention returned to the SEC case against Ripple. The weekend filings of summary judgment motions brought XRP back towards the $0.50 handle.

Markets are eyeing a December conclusion of the SEC case against Ripple which would also mark its third anniversary. Investor sentiment for a favorable outcome is warranted.

The defendants filed the 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, the SEC had fought to protect the Hinman documents under solicitor-client privilege. However, the summary judgment motion filing suggests an out-of-court settlement. The market consensus was that the SEC would settle before producing the materials related to the speech.

XRP Price Action

At the time of writing, XRP was up 1.10% at $0.4900. A mixed start to the day saw XRP drop to an early low of $0.48226 before hitting a high of $0.4900.

XRPUSD 230922 Daily Chart

Technical indicators

XRP needs to avoid the $0.4597 pivot to target the first major resistance level (R1) at $0.5247. With optimism over the SEC v Ripple case delivering the breakout session on Thursday, updates will need to be XRP-friendly to support a breakout from $0.50.

Another extended rally would support a run to $0.55 and the second major resistance level (R2) at $0.5647. The third major resistance level (R3) is located at $0.6697.

A drop through the pivot would bring into play the first major support level (S1) at $0.4197. Barring an extended sell-off, XRP is likely to avoid sub-$0.40 and the second major support level (S2) at $0.3547.

The third major support level (S3) is located at $0.2497.

XRPUSD 230922 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 $0.39139. 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 ($0.5247) to target $0.55. However, a slide through S1 ($0.4197) would give the bears a run at the 50-day EMA ($0.39139). The 200-day EMA sits at $0.36002.

XRPUSD 230922 4 hour chart