XRP News: Ripple CLO Stuart Alderoty and Coinbase CLO Paul Grewal Connect on the SEC

Key Insights:

• XRP gained 0.38% on Monday, ending the session at $0.6119.
• Increasing regulatory and lawmaker scrutiny sent XRP below the $0.58 handle for the first time since November 22.
• On Tuesday, SEC activity, US lawmaker scrutiny, and SEC v Crypto cases will influence buyer demand.

The Monday Overview

On Monday, XRP gained 0.38%. After a 1.74% loss on Sunday, XRP ended the day at $0.6119. Significantly, XRP briefly dropped below the $0.58 handle for the first time since November 22, 2023.

Ripple CLO Stuart Alderoty Reacts to Coinbase News

Alderoty responded on X (formerly Twitter) to Paul Grewal, the Coinbase chief legal officer (COIN), saying,

“In less than 2 yrs after it was filed the Sup Ct decided “Howey” on stipulated facts. Here it took the SEC the same amount of time to say what everyone knew it would say: It would not engage in crypto rule-making. This is political gamesmanship with the industry and the courts.”

Paul Grewal announced a filing in the Third Circuit challenging the SEC’s decision to deny Coinbase’s rule-making petition.

The SEC is in the courts with Ripple and Coinbase. Ripple drew first blood with the Programmatic Sales ruling. However, Ripple faces a hefty fine for illegally selling XRP to institutional investors. More importantly, the SEC will likely appeal the Programmatic Sales ruling after the conclusion of the SEC v Ripple case.

Amidst the uncertainty about an SEC appeal in the SEC v Ripple case, the SEC v Coinbase case also warrants attention. In August, Coinbase filed a motion to dismiss (MTD) the SEC charges against Coinbase. Coinbase argued the SEC lacked the statutory authority to regulate crypto exchanges. Senator Cynthia Lummis backed the Coinbase MTD by filing an amicus curiae brief.

If Judge Katherine Failla grants the Coinbase Motion-To-Dismiss, the SEC would have its wings clipped. An SEC loss to Coinbase could also end the SEC’s reign of regulation by enforcement.

The SEC and Coinbase will deliver oral arguments relating to the MTD on January 17, 2024.

XRP Price Action

Daily Chart

XRP remained below the 50-day EMA while sitting above the 200-day EMA, affirming bearish near-term but bullish longer-term price signals.

An XRP move through the 50-day EMA would bring the $0.6354 resistance level into play.

SEC v Crypto, SEC activity, and US lawmaker scrutiny remain the focal points.

However, a fall through the $0.60 handle would bring the $0.5835 support level into play.

The 14-day RSI reading, 46.01, indicates a break below the $0.5835 support level before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, affirming bearish near-term price signals. Notably, the 50-day EMA crossed through the 200-day EMA, sending another bearish signal.

An XRP move through the EMAs would give the bulls a run at the $0.6354 resistance level.

However, an XRP drop below the $0.60 handle would support a fall to the $0.5835 support level.

The 4-hourly RSI, with a reading of 48.93, indicates an XRP fall to the $0.5835 support level before entering oversold territory.