XRP News: SEC vs. Ripple Uncertainty and Legal Battles – What Lies Ahead?

Key Insights:

• XRP declined by 0.83% on Tuesday, ending the session at $0.6245.
• Uncertainty about the SEC v Ripple case and likely Programmatic Sales appeal continue to influence buyer demand for XRP.
• On Wednesday, the focus will be on US regulatory scrutiny, SEC v crypto case-related news, and BTC-spot ETF-related updates.

The Tuesday Overview

On Tuesday, XRP declined by 0.83%. Partially reversing a 2.37% rally from Monday, XRP ended the day at $0.6245.

SEC v Ripple: Uncertainty Left XRP in Negative Territory

There were no SEC v Ripple case-related updates for investors to consider on Tuesday. The lack of case-related news left investors considering the road ahead for Ripple in the Courts. Uncertainty about the penalty for XRP sales to US institutional investors lingers.

Hopes of an early settlement have faded as the SEC and Ripple proceed through remedies-related discovery. The parties must conclude remedies-related discovery by February 12, 2024. Remedy-related brief filings between March 13 and April 19 will give investors a view of the SEC and Ripple’s positions vis-à-vis the range for a penalty. After April 19, Judge Analisa Torres will deliberate on the penalty Ripple must pay.

The crypto community will react to a court-imposed Ripple penalty. However, the SEC’s plan to appeal the Programmatic Sales of XRP ruling remains the focal point. In the SEC v Terraform Labs case, the court ruling that Luna and TerraUSD are securities has created more confusion.

On the one hand, progress toward a BTC-spot ETF market is positive. On the other hand, increasing regulatory uncertainty could continue to cap the upside for XRP in the near term.

A successful appeal against the Programmatic Sales ruling could materially impact XRP and the broader crypto market. An appeal could extend the SEC v Ripple case into 2025.

However, the SEC v Coinbase (COIN) case could deliver swift regulatory certainty. On January 17, Judge Failla will hear oral arguments on the Coinbase motion to dismiss (MTD). If Judge Failla grants the MTD, the SEC could lose its free reign to regulate US crypto exchanges. Such an outcome would be a boon for XRP and the broader market.

In August, Coinbase filed an MTD arguing the SEC lacks the statutory authority to regulate crypto exchanges. Senator Cynthia Lummis filed an amicus curiae brief supporting the Coinbase MTD.

XRP Price Action

Daily Chart

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

An XRP break above the $0.6354 resistance level would support a move toward the $0.7047 resistance level.

On Wednesday, the focus will be on SEC vs. crypto case-related updates, regulatory scrutiny, and crypto-spot ETF-related news.

However, a fall through the 50-day EMA would give the bears a run at the $0.5835 support level.

The 14-day RSI reading, 51.14, suggests an XRP breakout to the $0.65 handle before entering overbought territory.

4-Hourly Chart

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

An XRP break above the $0.6354 resistance level would bring the $0.7047 resistance level into view.

However, a break below the 50-day and 200-day EMAs would support a fall toward the $0.5835 support level.

The 4-hourly RSI, with a reading of 51.88, suggests an XRP move to $0.65 before entering overbought territory.