XRP News Today: Legal Speculation Fuels XRP’s Breakthrough Beyond $0.60

XRP Breaks Through $0.60 on Appeal Chatter

On Saturday, September 28, XRP rallied by 4.41%, reversing a 0.29% loss from the previous session, closing at $0.6151. Significantly, XRP outperformed the broader market, which declined by 0.14%, taking the market cap to $2.260 trillion.

SEC vs. Ripple: Appeal Speculation

On Saturday, speculation about the chances of an SEC appeal against rulings in the SEC v Ripple case impacted XRP demand.

John E. Deaton, candidate for the United States Senate in Massachusetts and Amicus Curiae attorney, shared his thoughts on an SEC appeal. Deaton stated,

“I don’t believe an appellate court will rule Judge Torres was in error in applying the 3rd prong. Judge Torres made her ruling very fact specific. The SEC did not rely on any expert testimony related to XRP holders (it was excluded anyway) but the Judge did rely, however, on the XRP Holder affidavits I submitted.”

Deaton elaborated on the possible outcome of an appeal, saying,

“An appellate court could say, just as Judge Torres acknowledged, there could be a scenario where secondary sales could qualify as investment contracts because the facts meet all the Howey factors. But in the Ripple XRP case, the facts presented just don’t satisfy it. Thus, the case gets affirmed on appeal but it doesn’t prevent the SEC from arguing secondary sales constitute investment contracts in other cases.”

Deaton highlighted that Judge Torres did not apply the second prong of the Howey Test (common enterprise) since secondary sales did not satisfy the third prong.

If the 2nd Circuit deemed that Judge Torres applied the 3rd prong incorrectly, the case would return to Judge Torres for reassessment. Deaton believes that Judge Torres would likely rule that the SEC did not establish a common enterprise. Another SEC loss could lead to a second appeal.

Deaton concluded,

“It makes no sense and would be a total waste of taxpayer money to appeal this decision, which is why someone like Gary Gensler might just appeal.”

Ripple Court Filing and Former SEC Lawyer Fuel Speculation About an Appeal

Judge Torres delivered her final judgment on August 7, 2023. The SEC and Ripple must file appeals against rulings in the Ripple case by October 7. Ripple recently filed for a stay of the $125 million penalty on September 6, 2024. The stay means that Ripple must pay the $125 million penalty within 30 days of the appeal window closing. Ripple’s filing fueled speculation of a possible SEC appeal.

On September 26, Fox Business journalist Eleanor Terrett reported a conversation with a former SEC lawyer, who highlighted the importance of an SEC appeal, stating,

“Everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”

As the October 7 appeal deadline looms, speculation about an SEC appeal will likely intensify, possibly increasing XRP price volatility.

XRP Price Trends Hinged on SEC Activity

Price trends remain hinged on whether the SEC appeals rulings from the Ripple case. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40. Conversely, if the SEC does not file an appeal, XRP could target $1.00, 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. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

XRP remains above the 50-day and 200-day EMAs, affirming bullish price signals.

A breakout from the September 28 high of $0.6267 could give the bulls a run at the post-final judgment high of $0.6434. Furthermore, a break above $0.6434 could bring the $0.70 level into play.

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

Conversely, a drop below $0.60 may signal a fall toward the 50-day EMA and the $0.5739 support level. A break below the 50-day EMA could give the bears a run at the 200-day EMA. However, buying pressure may intensify at the $0.5739 support level. The 50-day EMA is confluent with the support level.

With a 14-day RSI reading of 61.98, XRP could return to the $0.65 level before entering overbought territory.