XRP News: Ripple Chief Legal Officer Gives Predictions for 2024

Key Insights:

• XRP slid by 2.55% on Friday, ending the session at $0.6156.
• SEC – Coinbase news impacted the appetite for cryptos.
• SEC v crypto and US lawmakers remain focal points for the weekend.

The Friday Overview

On Friday, XRP declined by 2.55%. After a 0.61% gain on Thursday, XRP ended the day at $0.6156.

Ripple Shares Predictions for 2024

On Friday, Ripple shared three predictions on policy and US crypto regulation for 2024, saying,

“Our Chief Legal Officer Stuart Alderoty kicks us off with three bold outlooks on policy and U.S. crypto regulation for 2024.”

The predictions are as follows:

#1 Prediction: “In 2024, the last bit of the SEC’s misguided lawsuit against Ripple will finally come to an end, but the SEC’s campaign of regulation by enforcement will continue against other industry leaders.”

#2 Prediction: “Judges will continue to be the last line of defense against the SEC’s overreach, and the SEC will continue to lose major issues in the courts – setting the table for a showdown in the Supreme Court.”

#3 Prediction: “Congress will agree in principle on crypto regulation but will disagree on the best course of action, leaving U.S. crypto firms stuck while the rest of the world makes significant positive strides.”

The predictions come at a tumultuous time for the crypto market. A crypto-spot ETF-fueled bull run fizzled out, with bitcoin (BTC) failing to break out from a 2023 high of $44,747.

Senator Elizabeth Warren targeted the crypto market, drawing increased support to introduce Banking regulations for the crypto space. The SEC drew investor interest, denying the Coinbase (COIN) petition for rulemaking.

There were no SEC v Ripple case-related updates for investors to consider on Friday. The SEC and Ripple are in the final stages of the SEC v Ripple case, with a conclusion likely before the summer of 2024.

After completing remedies-related discovery by February 12, 2024, the SEC and Ripple must file remedy-related briefs. Judge Analisa Torres will consider the briefs to determine a suitable penalty for XRP sales to institutional investors.

An SEC Appeal of the Programmatic Sales of XRP Is a 2024 Focal Point

Upon conclusion of the case, the crypto market anticipates the SEC to appeal the Programmatic of XRP ruling. Notably, the second prediction likely reflects optimism toward a successful outcome to an SEC appeal.

In July, Judge Analisa Torres ruled that XRP is not always a security, stating,

“Having considered the economic reality of the Programmatic Sales, the Court concludes that the undisputed record does not establish the third Howey prong. Whereas the Institutional Buyers reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP, Programmatic Buyers could not reasonably expect the same.”

In August, the SEC showed its intent, filing a motion for an interlocutory appeal of the court ruling. Judge Torres denied the motion in October. Judge Torres took the opportunity to reinforce her original ruling, leaving the SEC a path through the appellate courts to contest the court decision.

The Supreme Court could ultimately decide the outcome and deliver much-needed clarity to the crypto market. Significantly, the Supreme Court could rule that XRP is not a security when involving sales on exchanges and not solely in this case.

However, the predictions suggest a choppy 2024 for XRP and the broader market. The US crypto market needs a regulatory framework that drives innovation while protecting investors.

XRP Price Action

Daily Chart

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

An XRP move through the $0.6354 resistance level would bring the $0.65 handle into play. In the event of a breakout from $0.65, XRP could move to the $0.7047 resistance level.

SEC v Crypto case-related news, US lawmaker chatter, and SEC activity would garner investor interest.

However, a drop below the 50-day EMA would bring the $0.60 handle and the $0.5835 support level into play.

The 14-day RSI reading, 47.66, suggests a drop to the $0.60 handle before entering oversold territory.

4-Hourly Chart

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

An XRP break above the 200-day EMA would support a move to the 50-day EMA and the $0.6354 resistance level.

However, an XRP fall to the $0.60 handle would bring the $0.5835 support level into play.

The 4-hourly RSI, with a reading of 44.99, suggests an XRP return to the $0.60 handle before entering oversold territory.