XRP News: SEC Filing Against Coinbase Could Impact the SEC v Ripple Case

Key Insights:

• XRP fell by 1.99% on Friday, ending the session at $0.5762.
• SEC targeted the SEC v Coinbase case with Terraform Labs ruling.
• On Saturday, SEC v crypto case-related updates, BTC-spot ETF-related news, and US lawmaker chatter are focal points.

The Friday Overview

On Friday, XRP declined by 1.99%. Reversing a 0.88% gain from Thursday, XRP ended the day at $0.5762.

SEC v Coinbase Outcome Significant for SEC v Ripple Case

There were no SEC v Ripple case-related updates to influence buyer demand for XRP on Friday. However, SEC v crypto case-related news drew investor interest. On Thursday, the SEC filed a notice to the court relating to the ongoing SEC v Coinbase (COIN) case.

The SEC requested Judge Katherine Failla consider the recent SEC v Terraform Labs ruling in the case against Coinbase. In the January 4 filing, the SEC argued the Terraform Labs ruling further supports its opposition to Coinbase’s Motion for Judgment.

The filing called on Judge Failla to apply the reasoning behind the Terraform Labs ruling to the Coinbase case. In December, Judge Jed Rakoff ruled Terraform Labs and Do Kwon failed to register Luna and TerraUSD as securities.

Legal experts had a different take on the Terraform Labs ruling. Reacting to the ruling, Crypto and Finreg lawyer Mike Selig, formerly with the CFTC, stated,

“Judge Rakoff did not rule that cryptos are securities when sold by third parties in secondary transactions.”

The filing comes before a January 17 court date where the SEC and Coinbase will deliver oral arguments on the Coinbase motion to dismiss (MTD). In August, Coinbase filed a motion to dismiss, arguing the SEC lacks the statutory authority to regulate crypto exchanges.

The outcome of the SEC v Coinbase case could prove significant to the SEC v Ripple case.

SEC v Ripple: Appeal Against Ruling on Programmatic Sales of XRP

If Judge Failla grants the Coinbase MTD, the SEC case to appeal against the Programmatic Sales of XRP ruling could significantly weaken. On the other hand, if Judge Failla considers the Terraform Labs ruling and the SEC wins its case, an SEC win on appeal could be more likely.

Notably, the SEC did not present the Programmatic Sales of XRP ruling for the court’s consideration.

The SEC and Ripple must complete remedies-related discovery by February 12. Remedies-related discovery relates to the sale of XRP to US institutional investors.

XRP Price Action

Daily Chart

XRP sat below the 50-day EMA while holding above the 200-day EMA, affirming bearish near-term but bullish longer-term price signals.

An XRP break above the $0.5835 resistance level would support a move to the 50-day EMA and the $0.6364 resistance level.

On Saturday, the focus will be on SEC v crypto case-related news and BTC-spot ETF-related updates.

However, a fall through the 200-day EMA would bring the $0.5470 support level into play.

The 14-day RSI reading, 35.99, indicates an XRP fall through the $0.56 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day and 200-day EMAs, reaffirming bearish price signals.

An XRP break above the $0.5835 resistance level would give the bulls a run at the 50-day and 200-day EMAs. A break above the EMAs would support a move toward the $0.6354 resistance level.

However, a drop below the $0.56 handle would bring the $0.5470 support level into play.

The 4-hourly RSI, with a reading of 37.51, suggests an XRP fall through the $0.56 handle before entering oversold territory.