XRP News: BTC-Spot ETFs and Scrutiny Over SEC Chair Gensler

Key Insights:

• XRP gained 2.48% on Wednesday, closing the session at $0.5378.
• BTC-spot ETF market net inflows drive buyer demand for crypto.
• On Thursday, SEC v Ripple and Coinbase case-related news needs consideration.

The Wednesday Overview

On Wednesday, XRP gained 2.48%. Reversing a 1.33% decline from Tuesday, XRP ended the session at $0.5378.

BTC-Spot ETF Market Inflows Send XRP Toward $0.55

On Wednesday, investor sentiment toward the ongoing SEC v Ripple case took a back seat. Investors reacted to the BTC-spot ETF market flow data. On Tuesday, net inflows surged $631.2 million, highlighting pent-up demand on Wall Street for cryptos.

Significantly, iShares Bitcoin Trust (IBIT) registered net inflows of $493.1 million, its highest since launching on January 11.

While attention shifted towards the BTC-spot ETF market, SEC Chair Gary Gensler remained a focal point.

SEC Chair Gary Gensler Faces Scrutiny from All Angles

On Wednesday, Ripple Chief Legal Officer Stuart Alderoty reacted to an SEC Gensler speech to US law students, saying,

“On Tuesday, Gensler told an audience of Yale law students that the SEC is following the law, but his challenge is with Courts that “shift their interpretations” of the law. Was Tuesday Opposite Day?”

SEC Chair Gensler said to Yale law students,

“I think we’re doing everything according to the law and how the courts interpret the law.”

Notably, Gensler attributed recent SEC issues with the court to evolving court interpretations of the law, saying,

“As the courts shift their interpretations, jobs like mine are both challenging and more interesting. It’s kind of thinking about, where are the courts in 2024? Where might they be in ’25 and ’26, interpreting these matters of administrative authority?”

Scrutiny over SEC activity intensified in recent weeks. The crypto community may sense an opportunity to discredit the SEC and its legal capacity to regulate the crypto market. Significantly, US lawmakers have also taken more interest in SEC cases against cryptos.

SEC Credibility in the Courts Continues to Unravel

On February 8, five US Senators co-signed a letter to SEC Chair Gary Gensler. The Senators reacted to the SEC dropping charges against Debt Box, possibly to avoid further court scrutiny.

Significantly, the letter stated,

“Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other enforcement cases brought by the Commission may be deserving of scrutiny. It is difficult to maintain confidence that other cases are not predicated upon dubious evidence, obfuscations, or outright misrepresentations.”

In December, the presiding Judge in the SEC v Debt Box case ordered the SEC to,

“Show cause why it should not be sanctioned for making false and misleading representations to the court.”

The increased scrutiny comes at a poignant time for the US crypto market. The BTC-spot ETF market has ignited a bull run as Ripple and Coinbase (COIN) progress in their respective cases with the SEC.

A Coinbase victory in the SEC v Coinbase case could end SEC Chair Gensler’s reign over the US digital asset space. Significantly, a Coinbase victory may also end SEC hopes to appeal against the Programmatic Sales of XRP ruling. In July, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Both scenarios would be a boon for XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

An XRP break above the $0.5470 resistance level and the 50-day EMA would support a move to the 200-day. Selling pressure could intensify at $0.5470. The 50-day EMA ($0.5471) is confluent with the $0.5470 resistance level.

BTC-spot ETF market trends, SEC v crypto case-related updates, and US lawmaker chatter warrant investor attention.

However, a drop below the $0.52 handle would bring the $0.5042 support level into play.

The 14-day RSI reading, 53.81, indicates an XRP break above the 200-day EMA before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day and 200-day EMAs, sending bullish price signals.

A breakout from the $0.5470 resistance level would support a move toward the $0.5835 resistance level.

However, a break below the 200-day EMA would support a fall to the 50-day EMA.

The 4-hourly RSI, with a reading of 65.42, indicates an XRP move to the $0.5470 resistance level before entering the overbought territory.