XRP News: Ripple’s Legal Dance with SEC Intensifies; Forecast Amid Appeal Uncertainties

Key Insights:

• XRP’s three-day winning streak halts with a 0.57% drop, settling at $0.5054 on Tuesday.
• Anti-SEC sentiment rises as Ripple’s opposition filing awaits a defining SEC response.
• An awaited Judge Failla decision on Coinbase’s motion might pivot the prevailing narrative.

The Tuesday Overview

XRP fell by 0.57% on Tuesday. Partially reversing a 0.73% gain from Monday, XRP ended the day at $0.5054. Significantly, XRP ended a three-day winning streak.

SEC Under Fire as Investors Await Response to Ripple Opposition Filing

The SEC was in the spotlight on Tuesday. While investors await an SEC response to the Ripple opposition filing, CryptoLaw founder and Amicus Curiae attorney John E. Deaton took aim at the SEC, saying,

“The question remains as to why Clayton put such a consequential lawsuit (against Ripple) on the final meeting agenda of his chairmanship for a vote, and why did the Republican chair vote, with two Democratic commissioners, to approve it?”

Deaton posed the question in response to an article highlighting the SEC game plan to regulate cryptos in Court.

The Judge Torres ruling on Programmatic Sales has thrown the SEC a curveball. Calls to investigate Bill Hinman over his support for ethereum (ETH) could lead to more embarrassment for the SEC and the US Administration.

The timing of the increasing anti-SEC chatter coincides with the imminent SEC response to the Ripple opposition filing. While legal experts think the SEC has little chance of the appellate Courts overturning the Judge Torres ruling, the appeal process leaves XRP in limbo.

A Judge Failla ruling for the Coinbase (COIN) motion to dismiss would change the narrative.

The Wednesday Session

While the SEC v Ripple case will remain the focal point, we don’t expect the SEC to respond to the Ripple opposition filing until Friday.

Until Friday, speculation surrounding the likely ruling of the SEC motion for interlocutory appeal will garner interest.

However, chatter from Capitol Hill will likely draw more interest. Lawmakers return to Capitol Hill after a busy summer for the crypto markets and the Courts. Calls for legislation to end the SEC reign of regulation by enforcement would fuel buying appetite.

Investors should also monitor SEC v Coinbase case-related news. Judge Failla is currently considering a Coinbase motion to dismiss. The decision will impact the US digital asset space. Another SEC loss would pressure US lawmakers to address the US regulatory void affecting the US digital asset space.

XRP Price Action

Daily Chart

Despite a Tuesday loss, XRP remained above the $0.5042 support level. However, XRP sat below the 50-day and 200-day EMAs, sending bearish price signals. While investors remain cautious because of the SEC motion for interlocutory appeal, XRP grips onto the $0.50 handle.

A move through the trend line and 200-day EMA would give the bulls a run at the $0.5470 resistance level and the 50-day EMA. However, SEC v Ripple and Coinbase case-related news must be crypto-friendly to support a breakout.

Adverse crypto-related news would bring $0.45 and the $0.4322 support level into view.

The 35.08 14-Daily RSI reading should deliver sub-$0.48 before hitting oversold territory.

4-Hourly Chart

XRP sits at the $0.5042 support level. A pullback from the support level would bring sub-$0.48 into play. Uncertainty toward pending rulings in the SEC cases against Ripple and Coinbase continues to test buyer appetite.

However, we expect favorable news from the Ripple and Coinbase cases to support a breakout from the 50-day EMA to target the trend line. A break above the trend line would give the bulls a free run at the $0.5420 resistance level and the 200-day EMA.

The 14-4H RSI 46.74 reading shows XRP has more room to fall before entering oversold territory.