XRP News Today: Chris Larsen’s XRP Transfer Sparks Investor Concerns Amid SEC Uncertainty

XRP Underperforms Despite Bullish Market

On Tuesday, September 17, XRP declined by 0.39%, partially reversing a 2.60% gain from the previous day to close at $0.5847. Significantly, XRP underperformed the broader crypto market, which advanced by 2.67% to a total market cap of $2.040 trillion.

Did Co-Founder Chris Larsen Spook Investors?

On Tuesday, Whale Alert announced that Ripple co-founder Chris Larsen moved 50 million XRP (about $29.12 million) to an unknown wallet. Larsen last transferred XRP to a wallet in 2013, leading to speculation about the reason for this recent movement.

The crypto community speculated about the transfer, with some suggestions of Larsen making the transfer to donate to Kamala Harris’s Presidential campaign.

However, others speculated the transfer was a strategic move to protect his financial interests as the threat of an SEC appeal lingers. Any major Ripple executive’s activity often sends signals to investors regarding ongoing SEC developments.

SEC vs. Ripple: Legal Developments and Speculation

The SEC has remained silent on whether it will appeal rulings from the SEC vs. Ripple case. In August, Judge Analisa Torres delivered the final judgment, requiring Ripple to pay a $125 million penalty and comply with US securities laws. Since the final judgment, Ripple requested a stay on the penalty, fueling speculation that an appeal may be imminent.

Meanwhile, SEC filings in the ongoing Binance case have created further uncertainty. In a recent filing, the SEC said it no longer considers the crypto in the Binance case as crypto asset securities.

While the crypto market suggested the filing reduced the chances of an SEC appeal, the SEC did not appear to change its stance on cryptos and secondary sales.

Pro-crypto lawyers viewed the Binance filing as an attempt to add more confusion to the US digital asset space. James ‘MetaLawMan’ Murphy remarked on the Binance filing, stating,

“Does the footnote the SEC dropped into its binance brief clear up all the “crypto asset security” confusion? Maybe it’s just me, but dropping hints in footnotes seems like a weird way to regulate an enormous industry with millions of investors & billions in daily trading.”

SEC vs. Ripple Appeal Window Closing

Ripple and the SEC must file appeals by October 7, 60 days after the final judgment. Following Ripple’s request for a stay, pro-crypto lawyer Fred Rispoli raised the odds of an appeal, stating,

“Well, the odds have increased of an appeal. […]. This is not a guarantee that there will be an appeal, but putting that kind of money in a trust is not something that is done unless SEC is being evasive to Ripple lawyers as to whether it intends on appealing. Again, still possible that no appeal happens but odds have increased.”

Asked for the actual odds of an appeal, Rispoli gave odds of 60/40 in favor of an appeal.

XRP Price Trends Signal an SEC Appeal

Despite the recent SEC filing in the Binance case, XRP remains below the $0.60 level, reflecting investors’ continued caution regarding a potential SEC appeal.

On July 13, 2023, XRP surged to a high of $0.9527 in response to the Programmatic Sales of XRP ruling. Judge Analisa Torres ruled that Programmatic Sales of XRP did not satisfy the third prong of the Howey Test. However, XRP retreated below $0.50 amid fears of an SEC appeal.

XRP Price Trends and SEC Appeal Plans

Price trends will likely depend on whether the SEC appeals rulings from the Ripple case. If the SEC appeals, XRP may drop below $0.40. Conversely, XRP could target $1.00 if the SEC does not file an appeal notice, mirroring the market’s response to the Programmatic Sales of XRP ruling.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Stay informed on the latest legal developments to capitalize on XRP’s potential price movements.

XRP Price Action

Daily Chart

XRP hovers above the 50-day and 200-day EMAs, confirming a bullish price trend.

A break above the September 14 high of $0.5994 and the $0.60 level could give the bulls a run at the $0.6527 resistance level. Furthermore, a breakout from the $0.6527 resistance level may signal a move toward the $0.70 level.

SEC activity and SEC vs. crypto case-related news require consideration.

Conversely, a break below the $0.5739 support level could bring the 50-day and 200-day EMAs into play. A fall through the EMAs would signal a bullish trend reversal and a possible fall to the $0.50 level.

With a 14-day RSI reading of 54.85, XRP may climb to the $0.65 level before entering overbought territory.