XRP News: SEC Drops Lawsuit, Ripple’s Brad Garlinghouse and Chris Larson Vindicated

Key Insights:

• XRP rallied by 6.62% on Thursday, ending the session at $0.5204.
• The SEC dropped the civil charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larson.
• Hopes of a settlement in the SEC v Ripple case may fuel extended gains.

The Thursday Overview

On Thursday, XRP rallied 6.62%. Reversing a 0.65% decline from Wednesday, XRP ended the day at $0.5204.

SEC Drops Lawsuits Against Ripple Co-Founder Chris Larson and CEO Brad Garlinghouse

On Thursday, news broke of the SEC dropping the charges against Ripple co-founder Chris Larson and CEO Brad Garlinghouse.

Defense attorney James Filan shared the court filing, which addressed the pending case against Ripple, stating,

“The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case – what remedies are proper against Ripple for its Section 5 violations with respect to its Institutional Sales of XRP – and respectfully request until November 9, 2023, to propose such schedule to the Court, or, if the parties cannot agree, to seek a briefing schedule from the Court on a contested basis.”

The comments reveal an SEC willing to settle the case against Ripple.

Ripple CEO Brad Garlinghouse had this to say,

“In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentation) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build over a decade.”

Garlinghouse went on to say,

“The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses. How many millions of taxpayer $ were wasted?! Feels good to finally be vindicated.”

Ripple Chief Legal Officer Stuart Alderoty reacted to the SEC move, saying,

“The SEC made a serious mistake going after Brad & Chris personally – and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC.”

The SEC filed charges against Ripple and Ripple executives Brad Garlinghouse and Chris Larson in 2020. Significantly, the SEC dropped the charges after presiding Judge Analisa Torres denied a motion for interlocutory appeal. The SEC contested the court ruling on XRP not being a security in Programmatic Sales.

XRP Price Action

Daily Chart

XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals. Significantly, the 50-day EMA converged on the 200-day EMA. A bullish cross would support an extended XRP rally and signal a near-term bearish trend reversal.

An XRP return to $0.5300 would support a move to the $0.5470 resistance level and trend line. Market reaction to the SEC decision and hopes of a settlement in the SEC v Ripple case may support a positive session.

However, a break below the EMAs would bring the $0.5042 support level into play.

The 59.27 14-day RSI reading indicates a move to the $0.5470 resistance level before entering overbought territory.

4-Hourly Chart

In the 4-hourly Chart, XRP hovers above the 50-day and 200-day EMAs, reaffirming bullish price signals.

An XRP return to $0.53 would give the bulls a run at the $0.5470 resistance level.

However, a drop below the $0.52 handle would support a move to the $0.5042 support level and 200-day EMA. Buying pressure will likely intensify at $0.5040. The 200-day EMA is confluent with the $0.5042 resistance level.

The 4-hourly RSI, with a reading of 77.54, shows XRP deep in overbought territory.