XRP News: BTC-Spot ETFs, XRP-Spot ETFs, and the SEC v Ripple Case

Key Insights:

• XRP gained 2.23% on Friday, closing the session at $0.5261.
• BTC-spot ETF market inflows fueled a bitcoin (BTC) and broader market rally.
• On Saturday, US lawmakers, the SEC, and SEC v crypto case-related news need investor attention.

The Friday Overview

On Friday, XRP gained 2.23%. Following a 0.19% rise on Thursday, XRP ended the session at $0.5261.

BTC-Spot ETF Market Drives Buyer Demand for XRP

On Friday, bitcoin (BTC) rallied 3.92%, ending the session at $47,104. BTC-spot ETF market flows and volumes fueled a BTC return to $48,000 for the first time since January 11.

Investors remain hopeful for the SEC to approve ETH-spot ETFs by the first deadline in May. If the SEC approves the first batch of ETH-spot ETFs, the door could open to spot ETF filings for XRP.

In November, XRP rallied 8.14%, striking a Q4 2023 high of $0.7326 before retreating to sub-$0.60. Fake news of a BlackRock (BLK) spot ETF filing for iShares XRP Trust fueled the brief return to the $0.73 handle.

However, the ongoing SEC v Ripple case remains pivotal to the future of an XRP-spot ETF market. The SEC and Ripple are progressing through remedies-related discovery, which concludes on February 19.

After remedy-related brief filings from the SEC and Ripple and an SEC reply brief, Judge Analisa Torres will decide the penalty for breaching Section 5 of the Securities Act. Once Judge Torres rules on the appropriate disgorgement, the SEC will likely appeal against the Programmatic Sales of XRP ruling.

In July, Judge Torres ruled that Programmatic Sales of XRP do not satisfy the third prong of the Howey test. Failing to meet one of the prongs of the Howey test means it does not qualify as a security.

However, Judge Torres ruled that XRP is a security in sales to institutional investors.

It is unlikely that the SEC would approve an XRP-spot ETF during the appeal process. XRP trailed the broader market, with SEC plans to appeal against the Programmatic ruling a headwind. The total crypto market cap increased by 3.35% ($56.03 billion) to $1,729 billion on Friday.

XRP Price Action

Daily Chart

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

A break above the Friday high of $0.5286 would support a move to the $0.5470 resistance level and the 50-day EMA. An XRP breakout from the 50-day EMA would bring the 200-day EMA into play.

SEC v crypto case-related news, US lawmakers, and BTC-spot ETF-related updates need consideration.

However, a drop below the $0.52 handle would give the bears a run at the $0.5042 support level.

The 14-day RSI reading, 46.84, suggests an XRP break below the $0.50 handle before entering oversold territory.

4-Hourly Chart

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

An XRP move through the Friday high of $0.5286 would give the bulls a run at the 200-day EMA and the $0.5470 resistance level.

However, a break below the 50-day EMA would support a fall to the $0.5042 support level.

The 4-hourly RSI, with a reading of 63.99, suggests an XRP move to the 200-day EMA before entering the overbought territory.