XRP News Today: Uncertainty Looms Ahead of SEC’s Monday Filing

The Saturday Overview

On Saturday (May 4), XRP declined by 0.45%. Partially reversing a 2.60% gain from Friday (May 3), XRP ended the session at $0.5299.

SEC vs. Ripple: SEC Reply Brief Looming

There were no SEC vs. Ripple case-related updates for investors to consider on Saturday (May 4).

A lack of case-related news left investors to speculate about the looming SEC reply brief.

The SEC must file its remedy-related reply brief by Monday (May 6). In March, the SEC filed its remedy-related opening brief, pressing for a punitive penalty and an injunction. The SEC alleged that Ripple continued to breach US securities laws after the December 2020 complaint.

In April, Ripple filed its remedy-related opposition brief, stating that post-complain XRP sales were to accredited investors and through ODL agreements. ODL agreements ensure XRP holders avoid profits or losses.

The SEC reply brief will give investors a better sense of the strength of the SEC’s case for a punitive penalty and an injunction. XRP could come under selling pressure if the SEC can give evidence of Ripple continuing to breach US securities laws after the complaint.

Notably, an injunction prohibiting Ripple from selling XRP to institutional investors would impact its plans for the US market.

On Saturday (May 4), Fox Business journalist Eleanor Terrett shared updates from XRP Las Vegas 2024, saying,

“ Ripple CEO Brad Garlinghouse says ETH is not a security and XRP is not a security and that the SEC is grossly wrong and Gary Gensler is an unethical human being.”

The Fox Business journalist also shared news of a hearing on Capitol Hill involving the SEC Chair, posting,

“The House Financial Services Committee is working to get SEC Chairman Gary Gensler up on the Hill to testify this month but I’m told a date has not yet been finalized.”

The SEC classification of ETH and XRP as securities impacts the chances of ETH and XRP-spot ETFs and price trends.

XRP Price Action

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the 50-day EMA would support a move to the 200-day EMA and the $0.5739 resistance level.

Investors should monitor SEC vs. Ripple case-related news throughout the Sunday session.

Conversely, an XRP break below the top and bottom trend lines could signal a drop below the $0.50 handle.

The 14-day RSI reading, 47.02, indicates an XRP fall through the $0.50 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP held above the 50-day EMA while remaining below the 200-day EMA. The EMAs confirmed the bullish near-term but bearish longer-term price trends.

An XRP breakout from the $0.5361 resistance level would give the bulls a run at the 200-day EMA. A break above the 200-day EMA would bring the $0.5739 resistance level into play.

However, a fall through the 50-day EMA and the trend lines could signal an XRP drop below the $0.50 handle.

The 14-day RSI reading, 53.65, suggests an XRP move through the 200-day EMA before entering overbought territory.