XRP News: SEC, Ripple, and the Implications of a Coinbase Victory

Key Insights:

• XRP fell by 1.29% on Tuesday, extending its losing streak to four sessions.
• The silence regarding the SEC vs. Ripple case has left investors turning to other crypto-related SEC cases.
• The crypto community awaits Judge Failla’s pivotal verdict on the Coinbase motion to dismiss.

The Tuesday Overview

On Tuesday, XRP fell by 1.29%. Following a 2.86% decline on Monday, XRP ended the day at $0.4965. Notably, XRP extended its losing streak to four sessions.

SEC v Coinbase Pending Ruling Leaves XRP on the Defensive

There was no SEC vs. Ripple case-related news to draw investor interest on Tuesday. With the SEC vs. Ripple trial likely to start in the second quarter of 2024, investors may consider other SEC vs. crypto cases as a proxy.

While the Sam Bankman-Fried trial grabs the crypto headlines, the SEC v Coinbase (COIN) case remains significant for the US crypto market.

The crypto community awaits a Judge Katherine Failla ruling on the Coinbase motion to dismiss (MTD). Crypto advocates view the SEC v Coinbase case as significant in the evolution of the US digital asset space.

On October 3, the SEC opposed the Coinbase MTD, leaving it to Judge Failla for deliberation. A ruling could come at any time.

After the SEC vs. Ripple court ruling on the SEC motion for interlocutory appeal, a Coinbase win has become more vital for the crypto space. The presiding Judge in the SEC vs. Ripple case, Analisa Torres, opined that the ruling was specific to the Ripple case. However, there was no ruling for all cryptos, leaving the US crypto market with the SEC at the reins.

In June, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

A court ruling in favor of the Coinbase MTD could materially alter the US crypto landscape. Coinbase has the support of Republican Senator Cynthia Lummis. Senator Lummis filed an Amicus Brief, with others, calling on the Judge to dismiss the case.

XRP Price Actions

Daily Chart

XRP sat below the 50-day and 200-day EMAs, affirming bearish price signals.

An XRP break above the $0.5042 resistance would support a move to the 200-day and 50-day EMAs. A move through the EMAs would give the bulls a run at the $0.5470 resistance level.

However, a bearish cross of the 50-day EMA through the 200-day EMA will likely pressure XRP further. A drop to sub-$0.49 would give the bears a run at the $0.47 support level.

SEC v Coinbase and Ripple case-related news and commentary will remain the focal point.

The 42.00 14-day RSI reading indicates a fall to the $0.4700 support level before entering oversold territory.

4-Hourly Chart

In the 4-hourly Chart, XRP sits below the 50-day and 200-day EMAs, reaffirming bearish price signals. Significantly, the 50-day EMA pulled back from the 200-day EMA this morning, signaling potential further losses.

A drop below $0.49 would support a move toward the $0.4700 support level.

However, an XRP move through the $0.5042 resistance level would bring the 50-day and 200-day EMAs into play.

The 14-4 hourly RSI 34.66 reading suggests an XRP drop below $0.49 before entering oversold territory.