XRP News: Coinbase Victory Could End SEC Plans to Appeal XRP Ruling

Key Insights:

• XRP gained 2.10% on Monday, ending the session at $0.5351.
• BTC-spot ETF-related updates fueled buyer demand for cryptos.
• On Tuesday, investors must consider court rulings from the ongoing SEC cases against Ripple and Coinbase.

The Monday Overview

On Monday, XRP gained 2.10%. Reversing a 1.26% loss from Sunday, XRP ended the session at $0.5351.

BTC-Spot ETF-Related Updates Fuel XRP Demand

BTC-spot ETF market updates drove buyer demand for BTC and the broader crypto market. Downward trends in Grayscale Bitcoin Trust (BTC) outflows contributed to the gains.

However, XRP continued to sit below the $0.60 handle, with the SEC v Ripple case leaving XRP trailing BTC and the broader crypto market.

Investors await the court ruling on the SEC Motion to Compel. The SEC filed the Motion to Compel on January 11, requesting 2022/23 financial statements and post-complaint contracts governing XRP sales to institutional investors. Ripple and the SEC are progressing toward the February 12 deadline to complete remedies-related discovery.

There were no SEC v Ripple case-related updates since Judge Analisa Torres granted the Ripple Motion to file a Sur-Reply letter.

While investors await a court ruling, the SEC v Coinbase case could have more significance.

SEC v Coinbase: Motion to Dismiss Ruling Pivotal for the Crypto Market

Investors also await the court ruling on the Coinbase (COIN) motion to dismiss (MTD). Coinbase filed a Motion to Dismiss in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges.

If Judge Katherine Failla grants the Motion to Dismiss, the ruling could force the SEC to end its reign of regulation by enforcement. Judge Failla heard oral arguments for and against the Motion to Dismiss on January 17.

On Monday, Amicus Curiae attorney John E. Deaton considered the SEC v Coinbase case, saying,

“In 2021, Gary Gensler testified that exchanges like Coinbase and Kraken fell outside the jurisdictional purview of the SEC and CFTC. In fact, in April 2021, the SEC made a determination that it was in the public’s best interest to grant acceleration for a Coinbase IPO. Two years later, acting as a political operative, Gensler changed his mind and declared Coinbase’s entire business model as illegal and in violation of U.S. securities laws.”

As background, the SEC filed charges against Coinbase in June 2023 for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

The outcome of the SEC v Coinbase case could dictate the direction of the SEC v Ripple case. A Coinbase victory could end SEC plans to appeal the Programmatic Sales of XRP ruling. In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. A favorable end to the SEC v Ripple case would be a boon for Ripple and XRP.

XRP Price Action

Daily Chart

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

An XRP move through the $0.5470 resistance level would give the bulls a run at the 200-day and 50-day EMAs. A break above the 50-day EMA would bring the $0.5835 resistance level into play.

Investors must consider US lawmaker chatter, SEC v Ripple, and SEC v Coinbase case-related updates.

However, a break below the $0.52 handle would support a fall to the $0.5042 support level.

The 14-day RSI reading, 42.47, indicates an XRP fall through the $0.5042 support level before entering oversold territory.

4-Hourly Chart

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

An XRP return to the $0.54 handle would give the bulls a run at the $0.5470 resistance level. Conversely, a break below the 50-day EMA would support a fall toward the $0.5042 support level.

The 4-hourly RSI, with a reading of 61.94, suggests an XRP move to the $0.5470 resistance level before entering overbought territory.