XRP News: BTC-Spot ETF and SEC v Ripple Send XRP to $0.5044

Key Insights:

• XRP slid by 6.68% on Wednesday, ending the session at $0.5828.
• Rumors the SEC could reject BTC-spot ETF applications fueled a broad-based crypto sell-off.
• On Thursday, the focus will remain on US regulatory scrutiny, SEC v crypto case-related news, and BTC-spot ETF-related updates.

The Wednesday Overview

On Wednesday, XRP slid by 6.68%. Following a 0.83% decline on Tuesday, XRP ended the day at $0.5828.

BTC-Spot ETF Rumors Sent XRP to a Session Low of $0.5044

There was no SEC v Ripple case-related news to influence XRP price trends. The lack of case-related activity left XRP in the hands of the broader crypto market on Wednesday.

Rumors the SEC could reject the BTC-spot ETF applications sent XRP and the broader market into free fall. XRP tumbled to a Wednesday session low of $0.5044 before a partial recovery.

The crypto community shared their views on the broad-based crypto sell-off. Amicus Curiae John E. Deaton had this to say,

“I’m not a financial expert by any means but usually an asset doesn’t go straight up. On the first day of the year, BTC went up 7%. On the second day of the year, it reminded us what goes up sometimes comes down before going back up. BTC goes to $45K, and all you see are predictions of $100K, $200k, or even $1M before January 2025. BTC drops 6-7% the next day, and you see calls that it’s headed back under $20K.”

Notably, XRP suffered a more significant loss than BTC, highlighting XRP’s sensitivity to anti-crypto rhetoric. The SEC and Ripple continue to progress through remedies-related discovery. After the parties file their remedy-related briefs, Judge Analisa Torres will decide on the disgorgement Ripple must pay for XRP sales to US institutional investors.

After the case, investors expect the SEC to appeal against the Programmatic Sale ruling. Anti-crypto rhetoric raises the chances of an appeal. Investors could cement bets on an SEC appeal if the SEC rejects the BTC-spot ETF applications. An appeal could leave XRP in limbo until 2025. Legal experts expect the appeal process to take one year or more.

XRP Price Action

Daily Chart

XRP sat below the 50-day EMA while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

A break above the $0.5835 resistance level would support a move to the 50-day EMA and the $0.6354 resistance level.

On Thursday, the focus remains on BTC-spot ETF-related news, SEC vs. crypto case-related updates, and US regulatory scrutiny.

However, a break below the 200-day EMA would bring the $0.5470 support level into play.

The 14-day RSI reading, 37.67, indicates an XRP fall through the 200-day EMA before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP held below the 50-day and 200-day EMAs, sending bearish price signals.

A move through the $0.5835 resistance level would give the bulls a run at the 50-day and 200-day EMAs.

However, a drop below the $0.56 handle would bring the $0.5470 support level into play.

The 4-hourly RSI, with a reading of 31.74, indicates an XRP fall below the $0.58 handle before entering oversold territory.