XRP News: Investors Await a Court Ruling in the SEC v Ripple Case

Key Insights:

• XRP declined by 2.93% on Sunday, ending the session at $0.5033.
• Uncertainty about a looming court ruling in the ongoing SEC v Ripple case left XRP in negative territory.
• On Monday, SEC v Ripple case-related updates and US regulatory scrutiny warrant investor attention.

The Sunday Overview

On Sunday, XRP declined by 2.93%. Reversing a 1.57% gain from Saturday, XRP ended the Sunday session at $0.5033. Notably, XRP ended a three-day winning streak.

SEC v Ripple: Court Ruling on Motion to Compel and US Case Law

There were no SEC v Ripple case-related updates to influence XRP price trends on Sunday. However, investors await a court ruling on the SEC Motion to Compel. The SEC filed the Motion to Compel on January 11 and a follow-up filing on January 23. Ripple opposed the Motion to Compel on January 19. Judge Analisa Torres granted a Ripple Motion to file a Sur-Reply letter on January 25.

The SEC filed the Motion to Compel on January 11, requesting the court order Ripple to provide,

• Financial statements for 2022/23.
• Post-complaint contracts governing XRP sales to institutional investors.

If Judge Torres grants the Motion to Compel, Ripple could face a heftier penalty for XRP sales to US institutional investors.

Notably, the SEC is looking for a punitive disgorgement to send a message to the crypto market. The SEC may target post-complaint activity to ascertain whether Ripple continued to breach Section 5 and push for a higher penalty.

However, US case law and exceptions to Section 5 of the US Securities Act could favor Ripple.

In the case Morrison vs NAB, the US Supreme Court ruled the SEC only has jurisdiction over US-based sales. On Thursday, amicus curiae attorney John E Deaton discussed another concern for the SEC. Deaton noted that XRP sales to US accredited investors could be exempt from Section 5 of the Securities Act.

After remedies-related discovery, the SEC and Ripple will file their respective remedy briefs. Ripple could argue:

• Only a fraction of the $770 million proceeds from XRP sales to institutional investors was to US institutional investors.
• Most of the XRP sales were to US accredited investors.

Despite the possible scenarios, investors remain jittery over SEC plans to appeal the Programmatic Sales ruling.

XRP Price Action

Daily Chart

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

A breakout from the $0.52 handle would give the bulls a run at the $0.5470 resistance level. An XRP move through the $0.5470 resistance level would bring the 50-day and 200-day EMAs into play.

Investors must consider SEC v Ripple case-related updates, SEC activity, and US regulatory scrutiny.

However, a fall through the $0.5042 support level would give the bears a run at the $0.4700 support level.

The 14-day RSI reading, 36.70, indicates an XRP drop below the $0.49 handle before entering oversold territory.

4-Hourly Chart

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

An XRP return to the $0.52 handle would support a move toward the 200-day EMA and the $0.5470 resistance level. Selling pressure could intensify at the 200-day EMA ($0.5463). The 200-day EMA is confluent with the $0.5470 resistance level.

However, a drop below the $0.5042 support level would give the bears a run at the $0.4700 support level.

The 4-hourly RSI, with a reading of 42.47, indicates an XRP fall through the $0.49 handle before entering the oversold territory.