XRP News Today: Appeal Concerns Weigh on XRP – Eyes on SEC’s Next Move

XRP Under Pressure Amidst Appeal Scrutiny

On Saturday, October 5, XRP declined by 0.88%, partially reversing a 2.30% gain from the previous session, to close at $0.5295. XRP underperformed the broader crypto market, which slipped by 0.09%, taking the total market cap to $2.110 trillion.

SEC vs. Ripple: Appeal Speculation Impacts XRP Demand

On Saturday, speculation about the SEC appeal against rulings in the SEC v Ripple case intensified.

The SEC filed its Notice of Appeal on Wednesday, October 2, sending XRP to a Thursday, October 3, low of $0.5075. On Friday, US attorney James Filan shared the docket from the US Court of Appeals for the Second Circuit, contributing to Saturday’s losses.

Notably, the docket revealed the SEC’s plans to appeal the summary judgment and final judgment.

The Summary Judgment: Key Details

On July 13, 2023, Judge Analisa Torres deemed that programmatic sales of XRP did not satisfy the third prong of the Howey Test. Following this, the SEC filed a Motion for Interlocutory Appeal, asking the court’s permission to appeal the ruling. However, Judge Torres rejected the request, meaning the SEC had to wait for the final judgment before proceeding with the appeal.

Former SEC Lawyer Marc Fagel reacted to a post on X that said the SEC appealed the penalty amount, not the XRP’s non-security decision, stating,

“The SEC is appealing the ruling that programmatic sales were not securities sales. (They may also challenge the disgorgement and penalties, but that’s not the purpose of the appeal.)”

Fagel added,

“I believe the purpose of the appeal is primarily to reverse the lower court’s ruling that programmatic & non-cash sales were not securities sales. I assume they’ll challenge the remedies (and the individuals’ liability) as well, but they wouldn’t be doing this just for penalties.”

Regarding the SEC’s interest in remedies, Fagel concluded,

“In the event the SEC wins (a long shot, BTW), yes, penalties would be higher (though none of the money goes to the SEC). But they’re more interested in the legal precedent–i.e. establishing law that the circumstances of Ripple’s sales require registration.”

The Final Judgment: Impact on Ripple and the Market

On August 7, Judge Torres ordered Ripple to pay a $125 million civil penalty but denied the SEC’s request for a $1.1 billion disgorgement. Judge Torres also rejected the SEC’s request to prohibit XRP sales to institutional investors.

The SEC may target these two rulings in its appeal and the summary judgment ruling. A substantial disgorgement order could send a bold statement to crypto firms. Additionally, prohibiting XRP sales to institutional investors could impact Ripple’s US expansion plans.

XRP Price Trends: What’s Next?

Investors await the SEC’s Form C filing for details of its appeal. Price trends remain hinged on speculation about the SEC’s appeal strategy and the court filing. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40.

Outlook

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

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

A breakout from Friday’s high of $0.5397 could give the bulls a run at the 200-day EMA. Furthermore, a break above the 200-day EMA may signal a move toward the 50-day EMA and the $0.5739 resistance level.

Geopolitics, Ripple-related news, SEC activity, and SEC vs. crypto case-related updates require consideration.

Conversely, a drop below Thursday’s $0.5075 low could indicate a fall through $0.50. A break below $0.50 may give the bears a run at the trend lines.

With a 14-day RSI reading of 38.67, XRP may fall to $0.50 before entering oversold territory.