XRP News: SEC vs Ripple – Decoding Judge Torres’ Critical Ruling Insights

Key Insights:

• XRP declined by 1.24% on Wednesday, partially reversing a 5.27% rally from Tuesday.
• Judge Torres countered the criticisms made by Judge Rakoff in a previous ruling,
• The denial of the SEC motion refocuses the market focus on the SEC lawsuits against Ripple and Coinbase.

The Wednesday Overview

On Wednesday, XRP declined by 1.24%. Partially reversing a 5.27% rally from Tuesday, XRP ended the day at $0.5326.

Ripple CEO Brad Garlinghouse and the Judge Torres Ruling

On Wednesday, the crypto community continued to react to the Court denying the SEC motion for interlocutory appeal.

Ripple CEO Brad Garlinghouse had this to say,

“The SEC’s request to file an interlocutory appeal is DENIED. I’m not a lawyer, but it seems the Court just told the SEC: you asked me to apply the Howey test, I did, and like it or not, you lost.”

Amicus Brief attorney John E. Deaton said,

“When the SEC filed the request to file an interlocutory appeal, I said it would be another mistake by the SEC. I said she would bolster her previous summary judgment, making it bulletproof on a full appeal because she would make it more fact-specific, which is what she did.”

Judge Torres Addresses Judge Rakoff Criticisms Square On

Notably, Judge Torres addressed the criticism from Judge Rakoff, the Judge in the SEC v Terraform Labs case square on. In the Court ruling, Judge Torres stated,

“Unlike in Terraform, the reasonable Programmatic Buyer would not believe that sales from purchases of all XRP… would be fed back into Ripple and XRP Ledger and would generate additional profits for all XRP holders.”

Judge Torres discussed the promotional materials that Ripple made available to institutional buyers and not to Programmatic Buyers before concluding,

“After a close examination of the extensive factual record and expert reports, the Court concluded that the Programmatic Buyers did not have every bit as good a reason as the Institutional Buyers to believe that Defendants would take their capital contributions and use the capital to generate profit on their behalf.”

Judge Torres also addressed the LBRY references in the SEC motion for interlocutory appeal, concluding,

“Therefore, the SEC fails to point to any digital-asset cases which conflict with the Court’s holding as to the Other Distributions and, thus, cannot show beyond mere conjecture that Courts would disagree on the issue.”

With Judge Torres denying the SEC motion, the focus will return to the SEC v Ripple case and the SEC v Coinbase (COIN) case.

Deaton believes the SEC would likely settle the case against Ripple if Judge Katherine Failla grants the Coinbase motion to dismiss (MTD). This week, activity in the SEC v Coinbase case picked up, with the SEC opposing the Coinbase MTD.

XRP Price Action

Daily Chart

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

A breakout from the trend line and $0.5470 resistance level would give the bulls a run at the $0.5835 resistance level. Selling pressure will likely intensify at $0.5835. The trend line is confluent with the $0.5835 resistance level.

Updates from the ongoing SEC v Ripple and Coinbase cases will likely influence investor sentiment. A Judge Failla ruling for the Coinbase MTD would be a boon for XRP and the broader crypto market.

A drop below the 50-day and 200-day EMAs would bring the $0.5042 support level into play.

The 55.43 14-Daily RSI reading indicates a break above the trend line and $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.

A break above the trend line and the $0.5470 resistance level would give the bulls a run at the $0.5835 resistance level.

However, an XRP drop below the 50-day and 200-day EMAs would support a move to the $0.5042 support level.

The 14-4 Hourly RSI 55.92 reading supports an XRP move through the trend line and $0.5470 resistance level before entering overbought territory.