XRP News: SEC Case Shadows Ripple as Fed Fear Rattles Market

Key Insights:

• XRP slid by 3.82% on Tuesday to end the day at $0.6098, with the bearish session seeing XRP dip to sub-$0.60 for the first time in eight sessions.
• GDPNow projects the US economy to grow by 5% in Q3, increasing concerns over a tighter monetary policy.
• SEC v Ripple case intensifies, drawing attention to former SEC Director William Hinman’s role.

On Tuesday, XRP slid by 3.82%. Reversing a 1.39% gain from Monday, XRP ended the day at $0.6098. XRP revisited sub-$0.60 for the first time in eight sessions.

XRP Price Action

This morning, XRP was down 0.08% to $0.6093.

Daily Chart

The Daily Chart showed XRP/USD sitting below the $0.6417 – $0.6530 resistance band. XRP fell through the 50-day EMA while remaining above the 200-day, sending bearish near-term but bullish longer-term price signals.

Looking at the 14-Daily RSI, the 39.35 reading reflects bearish sentiment, signaling a fall through the upper level of the $0.5900 – $0.5750 support band. However, an XRP move through the 50-day EMA would support a breakout from the $0.6417 – $0.6530 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, XRP sits below the $0.6417 – $0.6530 resistance band, with the bears eyeing sub-$0.60 and the $0.5900 – $0.5750 support band.

XRP sits below the 50-day and 200-day EMAs, sending bearish near and longer-term price signals. However, an XRP move through the 50-day EMA would give the bulls a run at the 0.6417 – $0.6530 resistance band.

The 39.76 14-4H RSI reading reflects bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI signals a fall through the 0.5900 – $0.5750 support band.

Fed Jitters Send XRP and the Broader Market South

It was a relatively quiet morning session, with disappointing economic indicators from China offset by PBoC efforts to boost growth.

However, US retail sales figures impacted market sentiment across the riskier asset spectrum. US retail sales figures continued to signal a hot US economy. In July, US retail sales increased by 0.7% versus +0.3% in June, with core retail sales up 1.0% in July versus +0.2% in June. Economists forecast retail sales to climb by 0.4% and core retail sales to fall by 0.3%.

While the latest figures removed the fear of a hard landing, the retail sales numbers for July reignited fears of a September Fed rate hike. According to GDPNow, the GDP estimate from the Federal Reserve Bank of Atlanta, the US economy is forecast to grow by 5.0% in Q3, up from 4.1% one week earlier.

The US equity markets also balked at the unexpected jump in consumption. The S&P 500 fell by 1.16% on Tuesday. It was also a bearish session for the Dow and the NASDAQ Composite, which saw losses of 1.02% and 1.14%, respectively.

While Fed Fear gripped the markets, SEC v Ripple case-related news continued to hit the news wires.

William Hinman Back in the Cross Hairs of the SEC v Ripple Case

Former SEC Director of the Division of Corporation Finance William Hinman was in the spotlight again. Amicus Curiae attorney John E Deaton shared his views on Hinman’s influence over the SEC and the XRP case, saying,

“Bill Hinman pushed for the case against Ripple to be filed (he was so vested, he even came back AFTER his last day at the SEC to quash any talks of a pre-suit settlement) – despite his own enforcement lawyers writing an XRP Howey analysis memo in 2018 that did not conclude with a recommendation for enforcement or even recommend sending a cease and desist letter to Ripple to stop selling XRP.”

Deaton went on to say,

“People who get chosen to lead an entire division like Corporation Finance are not always selected because they are the most knowledgeable or experienced. Sometimes they get picked because of who they know and, more importantly, who they can help (hurt) once they are in power.”

Deaton concluded that John Reed Stark supports the investigation into Hinman’s actions and comments to protect the integrity of the SEC.

Ripple Chief Legal Officer Stuart Alderoty recently targeted Bill Hinman over the infamous Hinman speech, saying,

“Crypto critic/x-SEC official John Reed Stark says there should be an investigation into Bill Hinman. This is broader than Ripple – there could potentially be serious conflicts of interest by a gov official. An investigation will either put it to rest or hold folks accountable.”

Alderoty shared an excerpt that read,

“Yes, I have read that Bill Hinman might have acted unethically or even unlawfully, at least according to some reports. The FBI should investigate the so-called Hinman emails, and if evidence shows unlawful conduct, DOJ should prosecute. But Hinman’s conduct is a weak deflection, a total red herring, and has little to do with the applicability of the securities laws.”

While an investigation into William Hinman is unlikely to influence the outcome of the SEC v Ripple case, findings of unlawful conduct would be another nail in the coffin of the SEC and the regulation-by-enforcement mantra.

The Day Ahead

The SEC v Ripple case remains the focal point. Ripple has not officially responded to the SEC motion for leave to file an interlocutory appeal. A response could come as early as today.

Judge Torres will then rule on the motion, with uncertainty over the Court decision likely to leave XRP in tenterhooks.

However, investors should also monitor SEC activity and US lawmaker chatter, while ETF, Binance, and Coinbase-related news will continue to move the dial.

A Court response to the request to dismiss the SEC case against Coinbase would impact XRP and the broader market.