XRP News: Ripple’s Legal Duel with SEC Influences Adoption and Price

Key Insights:

• XRP concludes a turbulent week, showing resilience by holding the $0.50 mark despite a net decrease.
• John E. Deaton draws attention to the SEC lawsuit and tangible repercussions on XRP adoption rates.
• As the Ripple defense preps, anticipation builds: Will the SEC submit an early response to the opposition?

The Sunday Overview

XRP rose by 1.16% on Sunday. Following a 0.20% gain on Saturday, XRP ended the week down 3.57% to $0.5046. Significantly, XRP held onto the $0.50 handle for the first time in three sessions.

Ripple Opposition Filing and SEC v Coinbase in Focus

Investors continued to respond to the Ripple opposition filing on Friday. However, uncertainty about the Court ruling on the SEC motion for interlocutory appeal remained evident.

XRP failed to retest resistance at $0.55, with investors quick to lock in profits.

Sentiment toward the SEC v Coinbase (COIN) case contributed to the cautious session.

The impact of the SEC v Ripple case on XRP remained a hotly discussed topic. CryptoLaw founder and Amicus Curiae attorney John E. Deaton highlighted the absence of XRP as a payment option on BitPay, saying,

“Here’s a small yet significant example of how the lawsuit hurt XRP’s adoption. I was just purchasing an item over the internet, and the payment options include: Pay with cryptocurrency with BitPay.”

Deaton noted BitPay originally included XRP in the US before removing it because of the SEC lawsuit against Ripple.

The Judge Torres ruling on Programmatic Sales should lead to the inclusion of XRP as a payment option across e-commerce platforms. However, the SEC appeal and uncertainty surrounding the outcome may further delay the more widespread adoption of XRP in the US.

The Monday Session

After the Ripple opposition filing of the SEC motion for interlocutory appeal, the focus returns to the SEC. According to the Court record, the SEC must file its response to the Ripple opposition filing by September 8.

While the Ripple defense team filed on the final day of the deadline, the SEC could submit an early response.

The Ripple opposition filing was convincing and focused on the inappropriateness of an interlocutory appeal. However, investors must consider the SEC argument for an interlocutory appeal and the rebuttal of the Ripple arguments to test buyer appetite.

While the SEC v Ripple case remains the focal point, SEC v Coinbase-related news will also move the dial. We expect an XRP and broad-based crypto breakout should Judge Failla grant the Coinbase motion to dismiss.

Beyond the SEC cases against Coinbase and Ripple, BTC-Spot ETF news also needs consideration. Hints of an SEC approval of one, some, or all the applications would support BTC and the broader crypto market.

However, investors should monitor the news wires for SEC activity and US lawmaker commentary. With the US Labor Day holiday, SEC and lawmaker activity may be light today.

XRP Price Action

Daily Chart

After gains over the weekend, XRP held above the $0.5042 resistance level. However, XRP remained below the trend line. Investor caution left XRP range bound. Uncertainty toward the SEC appeal and ongoing SEC v Coinbase case capped the upside.

However, a hold above the $0.5042 resistance level would support a run at the trend line. XRP would need a pickup in investor optimism toward the two cases to break above the trend line and test the 200-day EMA.

A fall through the resistance level of $0.5042 would bring sub-$0.48 into play. However, we don’t expect XRP to test support at $0.4322 without Court filings and rulings.

Considering the 35.94 14-Daily RSI reading, XRP can fall further before hitting oversold territory.

4-Hourly Chart

XRP sits below the EMAs and the trend line. However, XRP remains above the $0.5042 resistance level after the weekend gains. A hold above the $0.5042 resistance level would give the bulls a run at the 50-day EMA and trend line.

However, the 50-day EMA is confluent with the trend line, signaling stern resistance at $0.5150. A break above the trend line would bring resistance at $0.5470 into play. XRP would need Court activity or a crypto event to support a breakout.

A fall through the $0.5042 resistance level would bring sub-$0.48 into play,

Considering the 14-4H RSI 50.28 reading, XRP has room to run before hitting overbought territory.