XRP News Today: Appeal Drama Sparks Volatility Ahead of Key Deadline

XRP Drifts Lower Ahead of January 15 Deadline

On Saturday, January 4, XRP declined by 1.35%, partially reversing a 2.21% gain from Friday, closing at $2.4204. Meanwhile, the broader crypto market gained 0.26%, taking the total market cap to $3.420 trillion.

This article explores the impact of SEC developments, regulatory shifts, and XRP-spot ETFs on price trends.

SEC vs. Ripple: A Key Deadline Looms

The SEC vs. Ripple case and a looming deadline left XRP trailing the broader crypto market. The SEC must file its appeal-related opening brief by January 15. In October, the SEC filed its Notice of Appeal with the US Court of Appeals for the Second Circuit. The court docket showed the agency intent to appeal the Summary Judgment and Final Judgment.

The SEC’s plans to challenge the Programmatic Sales of XRP ruling were significant. On July 13, 2023, Judge Analisa Torres deemed that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

If the SEC overturns the Programmatic Sales of XRP ruling on appeal, XRP would likely face intense selling pressure. XRP would fall under the SEC’s regulatory purview, and US crypto exchanges would delist XRP to avoid SEC oversight. US crypto exchanges re-listed XRP after the 2013 court ruling, increasing market access to the token.

However, if the US Court of Appeals upholds the Programmatic Sales of XRP ruling it would set a pivotal precedent for the US digital asset space. Such a scenario would also influence other cases, including Coinbase (COIN) and Binance.

Uncertainty Around SEC’s Appeal

XRP remains above $2 despite uncertainty surrounding the agency’s looming appeal-related court filing. Markets expect SEC Chair Gensler and recently promoted senior crypto litigation officers to file a compelling argument, challenging rulings from the Ripple case.

However, legal experts expect incoming SEC Chair Paul Atkins to reverse course on the SEC’s crypto-enforcement efforts and withdraw the Ripple appeal. Nevertheless, the former SEC Commissioner would need the backing of the agency’s Commissioners to withdraw. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

The SEC has five Commissioners appointed by the US President. The departure of Chair Gensler and Democrat Commissioners Caroline Crenshaw and Jaime Lizarraga could pave the way for pro-crypto-appointed Commissioners. President-elect Trump will unlikely nominate Commissioners supporting the SEC’s regulation through enforcement mantra.

However, XRP may need the SEC to officially withdraw its appeal to break out from its current ranges. XRP failed to hit a new all-time high despite broader crypto market trends following the US Presidential Election. The token’s price action underscores the weight of the pending case on investor sentiment.

XRP Price Outlook: Risks and Opportunities

XRP price trends hinge on the SEC’s actions. A withdrawal could pave the way for XRP-spot ETFs, potentially driving XRP beyond the record high of $3.5505. Conversely, an appeal could push XRP below $2, with further declines to $0.50 if the SEC overturns the Ripple ruling.

XRP Price Action

Daily Chart

Despite Saturday’s retreat, XRP remains comfortably above the 50-day and 200-day EMAs, sending bullish price signals.

A break above Saturday’s high of $2.5073 could support a move toward the December 3 high of $2.9070. Furthermore, a return to $2.9070 may enable the bulls to target the $3 level next, potentially supporting a run to $3.5505.

SEC-related activity and Ripple case-related news require consideration.

Conversely, a break below $2 could indicate a drop toward the $1.9299 support level. A fall through the $1.9299 support level may enable the bears to target the $1.3461 support level.

With a 14-day RSI reading of 58.24, XRP could climb to the December 3 high of $2.9070 before entering overbought territory (RSI above 70).

Conclusion

XRP’s outlook hinges on the SEC’s actions and broader regulatory developments. A favorable resolution in the Ripple case could reignite bullish sentiment, while an adverse ruling may trigger sharp declines.

Explore our latest analysis here to uncover key insights into XRP’s price trajectory and the impact of ongoing regulatory developments.