XRP News: SEC Cases Against Ripple and Coinbase in the Spotlight

Key Insights:

• XRP gained 2.37% on Monday, ending the session at $0.6297.
• Investors moved past the Terraform Labs ruling.
• BTC-spot ETF-related news, regulatory activity, and SEC vs. crypto case-related updates remain focal points.

The Monday Overview

On Monday, XRP gained 2.37%. Reversing a 0.95% loss from Sunday, XRP ended the day at $0.6297.

SEC v Ripple Case: Remedies-related Discovery

There was no SEC v Ripple case-related chatter to influence the buyer appetite for XRP on Monday. The SEC and Ripple are progressing through remedies-related discovery. Upon completing discovery, the SEC will present arguments for punitive disgorgement in a brief related to remedies.

However, legal experts believe case law and the lack of fraud would enable Ripple to argue for a favorable penalty.

The SEC and Ripple must complete remedies-related discovery by February 12, 2024. Other deadlines include,

• SEC Remedy-related brief filing: March 13, 2024.
• Ripple Remedy-related brief filing: April 12, 2024.
• SEC Reply brief filing: April 19, 2024.

After the April 19 filing, Judge Analisa Torres will rule on the penalty for XRP sales to US institutional investors.

Increasing lawmaker scrutiny and the news of the US DoJ dropping the second round of charges against SBF could put a bigger spotlight on the ruling. Senator Elizabeth Warren and the SEC will want to send a message.

However, the SEC appealing against the Programmatic Sales of XRP ruling would likely garner more interest. In December, Judge Rakoff ruled Luna and TerraUSD are securities. An SEC win on appeal against the Programmatic Sales ruling could give more authority to the SEC.

One curveball could be the ongoing SEC v Coinbase (COIN) case. On January 17, 2024, Judge Katherine Failla will hear oral arguments on the Coinbase motion to dismiss (MTD).

Coinbase filed a motion to dismiss, arguing the SEC lacks the statutory authority to regulate crypto exchanges. If Judge Failla grants the MTD, it could end the SEC’s regulation by enforcement reign over the crypto market.

Between now and January 17, SEC activity, lawmaker chatter, and BTC-spot ETF-related news warrant investor attention.

XRP Price Action

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP move through the $0.6354 resistance level would give the bulls a run at the $0.65 handle.

BTC-spot ETF-related news, regulatory activity, and SEC vs. crypto case-related chatter remain the focal points.

However, a break below the 50-day EMA would bring the $0.5835 support level into play.

The 14-day RSI reading, 52.83, indicates an XRP return to the $0.65 handle before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP held above the 50-day and 200-day EMAs, reaffirming bullish price signals.

An XRP breakout from the $0.6354 resistance level would support a move to the $0.65 handle.

However, a fall through the 50-day and 200-day EMAs would give the bears a run at the $0.5835 support level.

The 4-hourly RSI, with a reading of 59.29, indicates an XRP return to $0.65 before entering overbought territory.