XRP News: SEC vs. Ripple Showdown Set for 2024; Settlement Hopes in the Hands of Coinbase

Key Insights:

• On Friday, XRP saw a modest 0.48% gain, halting a six-day decline, settling at $0.4852.
• Coinbase motion to dismiss could spare Ripple from a trial that may extend into 2027.
• A Coinbase win may become a landmark case for the US digital asset space.

The Friday Overview

On Friday, XRP gained 0.48%. Partially reversing a 1.23% loss from Thursday, XRP ended the day at $0.4852 Significantly, XRP ended a six-day losing streak.

XRP Replaces USD Coin in HKVAC Index Rebalancing

On Friday, the Hong Kong Virtual Asset Consortium (HKVAC) announced the rebalancing of its crypto indexes. Rebalancing occurs on a quarterly basis. Notably, HKVAC replaced USD Coin (USDC) with XRP in the following crypto indexes:

• HKVAC Cryptocurrency Global Large Top5 Equal Weight Index.
• HKVAC Cryptocurrency Global Large Top5 Index.

The inclusion follows the Court’s Programmatic Sales ruling, where XRP is not a security. Importantly, the Court denied the SEC motion for interlocutory appeal, paving the way for greater XRP inclusiveness in global crypto products.

There was no SEC v Ripple case-related news to influence investor sentiment on Friday. The crypto market must now wait for the SEC v Ripple trial, slated for April 2024. Hopes of an SEC settlement have faded. Lawyers in the crypto field believe the SEC will lodge more appeals at the end of the case. The appeals process could extend the case into 2027.

Jeremy Hogan, a partner at Hogan & Hogan, recently shared the possible scenarios for the SEC v Ripple case. Hogan predicted that, if the SEC proceeds with the trial and appeals unfavorable judgments, the trial would conclude on June 14, 2027.

Ripple would need deep pockets for a trial that extends into 2027. Ripple CEO Brad Garlinghouse spoke earlier this year, putting the legal bill at $200 million.

While Ripple prepares for trial, the SEC v Coinbase case offers hope of the SEC agreeing to a settlement.

SEC v Coinbase Motion to Dismiss Ruling Pivotal for the Crypto Market

Coinbase filed a motion to dismiss on August 4, 2023. In the preliminary statement, Coinbase argued,

“Two years ago, recognizing that the SEC wanted but lacked statutory power to regulate crypto exchanges, Chair Gary Gensler asked Congress for a legislative mandate. None came. Now, without any intervening legislative, the Commission accuses Coinbase – the largest US crypto exchange – of having “defied” the federal securities laws in failing to register as a securities exchange, broker, and clearing agency since 2019.”

The SEC filed charges against Coinbase in June 2023 after allowing Coinbase to go public in 2021.

Crypto Law founder John E. Deaton shared possible reasons why the SEC may settle the case against Ripple if the Court grants the Coinbase motion to dismiss.

The Programmatic Sales ruling was significant for Ripple. However, a Coinbase victory could become a landmark ruling for the US digital asset space.

XRP Price Actions

Daily Chart

XRP remained below the 50-day and 200-day EMAs, sending bearish price signals. Notably, the 50-day EMA converged on the 200-day EMA. A bearish cross would signal another XRP sell-off.

An XRP return to $0.49 would support a move to the $0.5042 resistance level. SEC v Coinbase and Ripple case-related news would influence investor sentiment.

However, a fall through the $0.4700 support level would give the bears a run at $0.45. Increased SEC scrutiny of the US digital asset space will likely affect the buying appetite for XRP.

The 38.01 14-day RSI reading suggests a drop below $0.48 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.

An XRP break above the 50-day EMA would support an XRP move to the $0.5042 resistance level.

However, a drop below $0.48 would give the bears a run at the $0.47 support level.

The 4-hourly RSI, with a reading of 42.21, indicates an XRP move to the $0.4700 support level before entering oversold territory.