XRP News: Ripple’s Decline Amidst SEC v Coinbase Uncertainty and US Inflation

Key Insights:

• XRP saw a six-session decline, ending Thursday at $0.4829 after a 1.23% fall.
• US Inflation impacts: Rising CPI reignites bets on a Fed rate hike, dampening crypto appetite.
• NASAA’s Amicus Curiae supports SEC’s stance against Coinbase, urging against narrowing legal frameworks.

The Thursday Overview

On Thursday, XRP declined by 1.23%. Following a 1.53% fall on Wednesday, XRP ended the day at $0.4829 Notably, XRP extended its losing streak to six sessions.

US Inflation Leaves XRP Below $0.50

The ongoing SEC v Ripple case is on the back burner at present. With the trial starting in April 2024, there are unlikely to be any court filings in the near term.

The lack of court activity left XRP in the hands of the broader crypto market on Thursday. A hotter-than-expected US CPI Report reignited bets on a Fed rate hike, weighing on the appetite for cryptocurrencies.

SEC v Coinbase Uncertainty Remains a Crypto Market Headwind

While XRP succumbed to Fed rate hike bets, uncertainty toward the outcome of the SEC vs. Coinbase (COIN) remained a headwind.

On Tuesday, the North American Securities Administrators Association (NASAA) filed an Amicus Curiae brief in support of the SEC.

The NASAA argued,

“The SEC’s theory in this case is consistent with the agency’s longstanding public position, the position advanced by state securities regulators, and even the understanding of digital asset issuers. The Court should reject Coinbase’s attempt to narrow and misapply the established legal framework […].”

The NASAA added,

“While they receive outsized attention from the media and regulators because they are aggressively marketed and fertile grounds for fraud, that attention belies the very limited size and significance of this “industry” in the context of the broader US economy. The Court should deny Coinbase’s motion in its entirety.”

Coinbase filed a motion to dismiss (MTD) in August, arguing that the SEC lacks jurisdictional authority because the services and digital assets do not qualify as securities.

The NASAA filed the Amicus Curiae brief after the SEC opposed the Coinbase MTD.

Coinbase, the SEC, and the crypto community await a Court ruling on the Coinbase MTD. Amicus Curiae attorney and CryptoLaw US founder John E. Deaton believes the SEC would settle the case against Ripple if the Court grants the Coinbase MTD.

If presiding Judge Katherine P. Failla denies the Coinbase motion, the US crypto market will face more regulatory uncertainty.

By way of background, 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.

XRP Price Actions

Daily Chart

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

A bearish cross of the 50-day EMA through the 200-day EMA would affirm the near-term bearish trend. A break below the $0.4700 support level would bring $0.45 into view.

SEC v Coinbase and Ripple case-related activity and commentary remain the key drivers.

An XRP return to $0.49 would give the bulls a run at the $0.5042 resistance level. A court ruling granting the Coinbase MTD would support a breakthrough the 200-day and 50-day EMAs.

The 37.16 14-day RSI reading supports a fall to the $0.4700 support level before entering oversold territory.

4-Hourly Chart

In the 4-hourly Chart, XRP remains below the 50-day and 200-day EMAs, reaffirming bearish price signals.

An XRP fall below $0.48 would support a move toward the $0.4700 support level.

However, an XRP return to $0.49 would give the bulls a run at the 50-day EMA and the $0.5042 resistance level.

The 14-4 hourly RSI 37.30 reading supports an XRP fall to the $0.4700 support level before entering oversold territory.