XRP News: SEC Account Hack, BTC-Spot ETFs, and Financial Services Committee Hearing

Key Insights:

• XRP joined the broader market in negative territory, falling by 1.90% to end the session at $0.5669.
• SEC posts on X (formerly Twitter) ahead of the anticipated approval of BTC-spot ETFs left XRP in negative territory.
• BTC-spot ETF-related updates, SEC v Crypto, and a digital asset subcommittee hearing on Capitol Hill will draw investor interest.

The Tuesday Overview

On Tuesday, XRP declined by 1.90%. Partially reversing a 4.79% rally from Monday, XRP ended the day at $0.5669.

BTC-Spot ETFs: The SEC Post and Pre-Approval Anxiety

There were no SEC v Ripple case or Zakinov v Ripple case-related updates for investors to consider on Tuesday. The lack of court activity left XRP in the hands of the broader crypto market.

Confusion about the SEC approving the first batch of BTC-spot ETFs impacted the appetite for cryptos. On Tuesday, the Securities and Exchange Commission (SEC) announced its X account was compromised, saying,

“The SEC X account was compromised, and an unauthorized post was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”

The crypto community reacted to the SEC announcing the approval of BTC-spot ETFs on X. Bloomberg Intelligence ETF analyst James Seyffart reacted, saying,

“WOW. SEC is approving Bitcoin ETFs. Didn’t expect them to break the news this way but this is indeed an official account as far as I’m aware.”

The Ripple community reacted to the SEC post about the compromised account.

Ripple Chief Legal Officer Stuart Alderoty responded, saying,

“Per *its own rules*, w/in 4 days the SEC should disclose the incident’s nature and scope, and the impact on the market along with a description of its processes for assessing, identifying, and preventing such cybersecurity threats.”

Amicus Curiae John E. Deaton shared a post from Senator Cynthia Lummis, saying,

“TIME TO ISSUE A SUBPOENA.”

Deaton was referring to a Financial Services Committee hearing in September. Chair Patrick McHenry warned,

“Let me be clear, I do not want to be the first chairman of this Committee to issue a subpoena to the Securities and Exchange Commission.”

Financial Services Sub-Committee Hearing

Later today, the hack of the SEC account could become a hotly debated topic. The Financial Services Committee will hold a sub-committee hearing. Significantly, the Digital Assets Financial Technology and Inclusion Subcommittee hearing is entitled: “Regulatory Whiplash: Examining the Impact of FSOC’s Ever Changing Designation Framework on Innovation.”

The Subcommittee hearing will garner investor interest. However, the SEC decision on the first batch of BTC-spot ETFs could be pivotal. Investors expect issuers to submit applications for XRP-spot ETFs in 2024.

XRP Price Action

Daily Chart

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

An XRP breakout from the 200-day EMA and $0.5835 resistance level would bring the 50-day EMA into play.

On Wednesday, the focus will be on the SEC, BTC-spot ETFs, and the Capitol Hill Subcommittee hearing.

However, a drop below the $0.5650 handle would bring the $0.5470 support level into play.

The 14-day RSI reading, 40.22, indicates an XRP fall to the $0.5470 support level before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, confirming bearish price trends.

An XRP move through the 50-day EMA and the $0.5835 resistance level would bring the 200-day EMA into play.

However, a fall below the $0.5650 handle would give the bears a run at the $0.5470 support level.

The 4-hourly RSI, with a reading of 48.89, suggests an XRP fall to the $0.5470 support level before entering overbought territory.