XRP News: Programmatic Sales, the SEC’s Appeal Risk, and the Coinbase Case

Key Insights:

• XRP gained 1.67% on Thursday, ending the session at 0.6213.
• Investor sentiment toward the SEC v Ripple case likely contributed to the Thursday gains.
• The outcome of the SEC v Coinbase case could impact the Ripple and Kraken cases.

The Thursday Overview

On Thursday, XRP gained 1.67%. Following a 5.60% rally on Wednesday, XRP ended the day at $0.6213.

No News is Good News

The crypto news wires were quieter during the US Thanksgiving holiday. There were no SEC v Ripple case-related updates to draw investor interest. Hopes of a conclusion to the SEC v Ripple case continued supporting buyer demand.

However, uncertainty lingers about the Programmatic Sales ruling. A swift conclusion to the SEC v Ripple case would allow the SEC to appeal the Programmatic Sales ruling.

Considering recent lawsuits against Binance, Coinbase, and Kraken, the SEC remains hellbent on classifying all crypto excl. BTC as securities.

Remedies-related discovery commenced earlier this month. The SEC and Ripple must complete the discovery by February 12, 2024. Significantly, Ripple could whittle down the $770 million from XRP sales to institutional investors to a much smaller amount. Ripple needs to prove what proportion of the $770 million sales came from US institutional investors.

A low percentage of sales to US institutional investors could bring the case to a rapid conclusion. A settlement would end the SEC’s losing streak to crypto firms.

Investors could respond favorably to a low penalty fee. However, XRP could face increased selling pressure if the SEC appeals against the Programmatic Sales ruling.

One curve ball for the SEC could be the court ruling on the Coinbase (COIN) motion to dismiss (MTD).

SEC v Coinbase Court Date of January 17, 2024, and the Ripple Case

Coinbase filed an MTD in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges. If Judge Katherine Failla grants the MTD, the impact on the US digital asset space could be seismic.

Amicus curiae attorney John E. Deaton thinks the SEC would settle the case against Ripple if the court grants the Coinbase MTD. A dismissal of the Coinbase case could impact the SEC v Kraken case. If the court deems the SEC lacks the statutory authority to regulate crypto exchanges, the courts may dismiss the charges against Kraken.

Judge Katherine Failla will hear oral arguments on the Coinbase MTD on January 17, 2024. It is feasible that Judge Failla could deliver her ruling before the SEC v Ripple deadline for remedies-related discovery.

XRP Price Action

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP break above the $0.6354 resistance level would support a move toward $0.65.

SEC v Ripple-related news and SEC activity are focal points on Friday.

However, a fall through the trend line and 50-day EMA would give the bears a run at the $0.5835 support level. Buying pressure may intensify at $0.5930. The 50-day EMA is confluent with the trend line.

The 14-day RSI reading of 52.43 indicates an XRP break above the $0.6354 resistance level before entering oversold territory.

4-Hourly Chart

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

An XRP break above the $0.6354 resistance level would support a move toward $0.65.

However, an XRP drop below the 50-day EMA would bring the 200-day EMA and the trend line into play.

The 4-hourly RSI, with a reading of 60.98, indicates an XRP break above the $0.6354 resistance level before entering overbought territory.