XRP News: SEC Faces Sanctions Amid Legal Battles with Ripple – Insights and Forecast

Key Insights:

• XRP gained 1.07% on Friday, ending the session at $0.6129.
• SEC gets more bad press from another case against a crypto platform illegally selling securities.
• Optimism toward a crypto-spot ETF market drove buyer demand for crypto assets on Friday.

The Friday Overview

On Friday, XRP gained 1.07%. After a 0.51% loss on Thursday, XRP ended the session at $0.6129.

SEC in Hot Water with the US Courts

There was more bad press for the SEC on Friday. Significantly, US lawmakers are seemingly unfazed by the increasing number of negative comments from the courts.

On Friday, Ripple Chief Legal Officer Stuart Alderoty highlighted the latest in a recap of court comments, saying,

“A troubling pattern emerges: […] Court orders SEC to show cause why it should not be sanctioned for making false and misleading representations to the Court. SEC v Debt Box, 11/30/23.”

Alderoty shared other high-profile court comments, including,

• “The court finds the SEC demonstrated “hypocrisy” by making inconsistent arguments to the Court and not acting out of a “faithful allegiance to the law.” SEC v Ripple, 7/12/22.

• Court agrees that the SEC defaulted on its duty to respond in good faith to Coinbase’s petition for crypto rulemaking. In Re: Coinbase, 6/6/23.

• Court finds that the SEC’s “inconsistent treatment of similar products is arbitrary and capricious.” Grayscale v SEC, 8/29/23.”

It is unclear whether the increasingly adverse comments about the SEC contribute to the losing streak. The SEC v Ripple case entered its final stage in November. A conclusion to the case is likely within the first half of 2024, assuming no settlement.

According to the November court order, the parties must conclude remedies-related discovery by February 12, 2024. By April 19, 2024, the SEC must file any remedies brief in response to the Ripple filing by April 12, 2024.

Appeal Threat Leaves XRP in Under Price Pressure

XRP was in negative territory this week, bucking the broader market trend. The ongoing threat of the SEC appealing the Programmatic Sales ruling remains a headwind.

XRP Price Action

Daily Chart

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

An XRP return to the $0.62 handle would support a move to the $0.6354 resistance level.

SEC activity and SEC v Ripple case-related news are the focal points.

However, a fall through the trend line and 50-day EMA would bring the $0.5835 support level into play.

The 14-day RSI reading of 49.71 indicates an XRP fall to the $0.5835 support level before entering oversold territory.

4-Hourly Chart

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

An XRP return to $0.62 would give the bulls a run at the $0.6354 resistance level and the $0.65 handle.

However, an XRP fall through the EMAs would bring the trend line and sub-$0.60 support levels into play.

The 4-hourly RSI, with a reading of 53.74, indicates an XRP move to the $0.6374 resistance level before entering overbought territory.