XRP News: SEC’s Pending Ruling Shakes Ripple, Pushes Price Below $0.50

Key Insights:

• XRP witnessed a dip, ending Sunday below the pivotal $0.50 mark for the first time since September 2.
• Awaiting updates from the SEC vs. Ripple case adds a layer of uncertainty for investors.
• The forthcoming Coinbase ruling also has the potential to reshape the US cryptocurrency terrain.

Sunday’s Overview of XRP

On Sunday, XRP fell by 1.29%. Following a 0.26% loss on Saturday, XRP ended the week down 1.47% to $0.4972. XRP ended the day at sub-$0.50 for the first time since September 2.

SEC Motion for Interlocutory Appeal Leaves XRP at Sub-$0.50 Levels

There were no updates from the ongoing SEC v Ripple case to influence investor sentiment. The lack of updates related to the SEC v. Ripple case left uncertainty toward the outcome of the SEC motion for interlocutory appeal to weigh on buyer appetite.

Investors must wait for the Judge Torres ruling on the SEC motion, with a ruling in favor of the SEC motion likely to drag the SEC v Ripple case beyond 2024.

Judge Torres could issue a ruling at any time. A ruling in favor of XRP could boost its price and support the broader crypto market. Court rulings are beginning to go against the SEC and its reign of regulation by enforcement. More SEC losses would also ease pressure on the judicial system to go against the SEC in future cases.

Coinbase Motion to Dismiss Ruling Imminent

Investors are also awaiting another pivotal Court ruling. In early August, Coinbase (COIN) filed a motion to dismiss (MTD) SEC charges for allegedly operating as an unregistered crypto broker, exchange, and clearing agency.

Since the Coinbase MTD, Republican Senator Cynthia Lummis and others filed Amicus Briefs supporting the Coinbase MTD. The decision rests in the hands of presiding Judge Failla, who is well acquainted with the crypto universe. A ruling in favor of the Coinbase MTD would materially alter the US crypto landscape in favor of the crypto market.

Judge Failla previously presided over the Uniswap case, where she dismissed the case and famously called BTC and ETH commodities.

Considering the likely impact of the rulings on the broader crypto market, a downward bias would likely remain in play over the near term.

XRP Price Action

Daily Chart

XRP sat below the $0.5042 resistance level and the 200-day EMA and trend line.

The pullback from the $0.5042 resistance level gives the bears a run at sub-$0.48. Unfavorable Court rulings in the Ripple or Coinbase case would bring the $0.4322 support level into play.

Investors will likely need favorable Court rulings and crypto events to support a move through the $0.5042 resistance level. A move through the resistance level would give the bulls a run at the trend line and 200-day EMA.

However, we expect selling pressure within the $0.5220 – $0.5230 range, with the 200-day EMA confluent with the trend line.

The 32.22 14-Daily RSI reading indicates XRP has little further to fall before entering oversold territory.

4-Hourly Chart

XRP sits below the 50-day and 200-day EMA, reaffirming the bearish price signals. The latest pullback also sees XRP hovering below the $0.5042 resistance level.

Uncertainty toward the SEC cases against Ripple and Coinbase leaves sub-$0.48 and the $0.4322 support level in view. However, favorable Court rulings in either case would support a breakout from the 50-day EMA and $0.5042 resistance level.

Investors should expect selling pressure at $0.5040, with the 50-day EMA confluent with the $0.5042 resistance level. A breakout from the 50-day EMA and $0.5042 resistance level would give the bulls a run at the $0.5470 resistance level.

The 14-4H RSI 35.88 reading shows XRP has little room to fall before entering oversold territory.