XRP News: Ripple Legal Battles Remain Headwinds

Key Insights:

• XRP slid by 2.90% on Sunday, ending the session at $0.5515.
• Zakinov v Ripple, SEC v Ripple, and SEC v Coinbase tested buyer demand for XRP.
• On Monday, the focus will be on BTC-spot ETFs, updates from ongoing cases involving crypto, and US regulatory scrutiny.

The Sunday Overview

On Sunday, XRP slid by 2.90%. Following a 1.42% loss on Saturday, XRP ended the day at $0.5515.

SEC v Crypto: A Talking Point and a Headwind

XRP extended its losing streak to three sessions on Sunday. The ongoing SEC v Ripple case, Zakinov v Ripple, and SEC v Coinbase (COIN) remain headwinds for XRP.

On January 11, the media and crypto community can join the Zoom court session via a Webinar link. The Zakinov case could be significant for the SEC and plans to appeal the XRP Programmatic Sales ruling. In the Zakinov v Ripple case, the plaintiffs allege Ripple sold XRP as an unregistered security.

The SEC v Ripple case is in its final stages. Ripple and the SEC are proceeding through remedies-related discovery. Ripple faces a penalty for XRP sales to institutional investors.

At the end of the case, the SEC can appeal against the Programmatic Sales ruling. Other court rulings before the likely appeal could affect the chances of a successful appeal.

Last week, the SEC asked the court to consider the Terraform Labs ruling in the SEC v Coinbase case. Judge Rakoff ruled that TerraUSD and LUNA are securities. An SEC win against Coinbase could tip cryptos into the SEC Securities basket.

The SEC charged Coinbase 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.

Key dates include,

• January 11: Zakinov v Ripple Zoom Hearing.
• January 17: Oral arguments on Coinbase motion to dismiss (MTD).
• February 12: Conclusion of remedies-related discovery in SEC v Ripple case.
• March 19: SEC submission of remedy-related discovery brief.
• April 12: Ripple submission of remedy-related discovery brief.
• April 19: SEC remedy-related discovery reply brief.

XRP Price Action

Daily Chart

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

An XRP move through the 200-day EMA would support a break above the $0.5835 resistance level. A return to $0.60 would bring the 50-day EMA and the $0.6364 resistance level into view.

On Monday, the focus will be on BTC-spot ETF-related updates, SEC v crypto, Zakinov v Ripple, and US lawmaker scrutiny.

However, a break below the $0.5470 support level would give the bears another run at the $0.5042 support level.

The 14-day RSI reading, 32.59, indicates an XRP fall through the $0.5470 support level before entering oversold territory.

4-Hourly Chart

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

An XRP return to the $0.56 handle would support a move to the $0.5835 resistance level and the 50-day EMA. A break above the 50-day EMA would bring the 200-day EMA into view.

However, a break below the $0.5470 support level would give the bears a run at the $0.5042 support level.

The 4-hourly RSI, with a reading of 31.92, suggests an XRP fall through the $0.5470 support level before entering oversold territory.