XRP News: Ripple on Edge as SEC Appeal Spotlights Hinman’s Testimony

Key Insights:

• XRP’s value marginally declined on Monday, although it managed to stay above $0.51 for the third day in a row.
• Attorney John E. Deaton emphasized the potential violation of 18 USC 208 by former SEC official William Hinman.
• XRP’s price remains stagnant as investors await the crucial Ripple opposition to the SEC’s interlocutory appeal.

The Monday Overview

XRP slipped by 0.04% on Monday. Reversing a 0.02% gain from Sunday, XRP ended the day at $0.5231. While wrapping up the day in negative territory, XRP avoided sub-$0.51 for the third consecutive session.

SEC v Ripple Appeal Brings Hinman into Focus

On Monday, there was no SEC v Ripple case-related activity to draw interest. The lack of Court activity left William Hinman in the spotlight.

Calls for an investigation into certain parties and testimony given under oath continued at the start of the week.

CryptoLaw founder and Amicus Curiae attorney John E. Deaton focused on William Hinman, the former SEC Director of the Division of Corporation Finance.

Deaton had this to say about Hinman testimony under oath,

“Sometimes you can guarantee something if you’re clairvoyant. I said when Hinman is asked if he knew Simpson Thacher was a member of the EEA when he gave his speech, he would deny knowing it. His depo was unsealed and look here. He has to b/c if he admits knowing, he admits to violating 18 USC 208.”

Deaton referred to a Hinman response to a question asking when he first learned that Simpson had a role in the Ethereum Alliance. Hinman replies he first learned of the link about a month or two after he left the SEC.

18 USC 208 relates to financial conflict of interest. The “statute prohibits all employees from participating in any particular Government matter that will have a direct and predictable effect on their financial interests. It also prohibits employees from acting in Government matters that will affect the financial interests of others with whom they have certain relationships.”

In an infamous 2018 speech, Hinman stated that BTC and ETH are not securities. In 2021, Empower Oversight filed a lawsuit against the SEC. Empower Oversight claimed that former SEC officials were biased against Ripple Lab and XRP. William Hinman returned to Simpson Thacher after leaving the SEC.

XRP Flatlines as Investors Await Ripple Opposition Filing

While the focus on William Hinman may not influence the outcome of the SEC motion for interlocutory appeal, a Federal investigation into the breach of 18 USC 208 would dish more embarrassment on the SEC plate.

However, the heavily anticipated Ripple opposition to the SEC motion for interlocutory appeal will move the dial. While investors must wait for the Ripple filing and the SEC response before Judge Torres rules on the motion, the language within a Ripple opposition filing will give investors a view on whether Judge Torres will rule in favor of an appeal.

A ruling in favor of the SEC motion would be XRP price negative.

The Tuesday Session

After another range-bound session, investor focus will remain on the SEC motion for interlocutory appeal. As per the Judge Torres Court schedule, Ripple must respond to the SEC motion by Friday, September 1. The SEC must file a response to the Ripple filing by September 8.

While we don’t expect an early filing, an unexpected Ripple filing would influence investor sentiment.

Beyond the SEC v Ripple case, investors should also monitor the crypto news wires or Binance and Coinbase (COIN)-related news.

A Court ruling on the motion to dismiss the SEC v Coinbase case would significantly impact market sentiment.

XRP Price Action

Daily Chart

XRP continues to find support at $0.51 while falling short of the $0.5750 – $0.5900 resistance band. However, XRP will break the current range in response to the Ripple Court filing. Uncertainty surrounding the chances of an SEC appeal leaves downside risk in play.

Considering the 14-Daily RSI at 34.36, XRP would have room to fall through the upper level of the $0.4920 – $0.4780 support band before falling into oversold territory. With the 50-day and 200-day EMAs sending bearish signals, avoiding sub-$0.50 hinges on the Ripple filing.

4-Hourly Chart

The 4-Hourly Chart affirms the bearish near and longer-term price signals. A positive response to the Ripple filing would support a breakout from the 50-day EMA to target the $0.5750 – $0.5900 resistance band and the 200-day EMA.

However, the EMAs send bearish signals. Uncertainty surrounding the outcome of the SEC motion for interlocutory appeal leaves XRP at risk of a return to sub-$0.50.

The 14-4H RSI reading of 50.34 is a neutral indicator, signaling further sideways movement.