XRP News Today: Market Slide Continues – Ripple Awaits Key Court Verdict

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Published: Aug 5, 2024, 02:10 GMT+00:00

Key Points:

XRP slid by 5.78% on Sunday, August 4, ending the session at $0.5234.
US recession fears overshadowed investor sentiment toward the SEC vs. Ripple case and settlement hopes.
On Monday, August 5, SEC vs. crypto case-related updates require consideration.

XRP Extends Losing Streak to Five Sessions

On Sunday, August 4, XRP slid by 5.78%. Following a 0.87% loss on Saturday, August 3, XRP ended the session at $0.5234. Significantly, XRP extended its losing streak to five sessions as the broader crypto market slid by 4.49% to a total market cap of $2.012 trillion.

US Recession Fears Grip the Global Financial Markets

Fears of a US economic recession have gripped the global financial markets. The US Jobs Report from Friday signaled a marked deterioration in US labor market conditions, suggesting the Fed kept rates too high for too long.

XRP and the broader crypto market are riskier assets exposed to increased risk aversion. The Nasdaq 100 mini was down 384 points early in the Monday session.

US Politics and SEC Chair Gary Gensler

Risk aversion overshadowed US politics and calls for the US administration to fire SEC Chair Gensler.

On Sunday, Fox Business Journalist Eleanor Terrett responded to an X (formerly Twitter) post that called for the removal of Chair Gensler, stating,

“The Biden/Harris admin could demote Gary Gensler today if they really wanted to. Biden has the power to designate another commissioner as chair, and it would take effect immediately without the approval of Congress. Gensler would still be on the commission, just not chair.”

The removal of Gensler as chair could boost XRP demand. A more crypto-friendly SEC Chair could end the reign of regulation through enforcement and plans to appeal the Programmatic Sales of XRP ruling.

In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

SEC vs. Ripple: Court Verdict Pending

Investors awaited a court verdict from the SEC vs. Ripple case. Judge Analisa Torres will decide the penalty Ripple must pay for violating US securities laws.

In July 2023, Judge Torres ruled that Ripple breached US securities laws by selling unregistered XRP to institutional investors. The penalty could range from $10 million, proposed by Ripple, to $2 billion and an injunction, per the SEC’s opening brief.

While Ripple may have deep pockets, an injunction prohibiting XRP sales to institutional investors would adversely impact its US expansion plans.

The verdict could come any time, exposing XRP to uncertainty amid heightened market volatility.

Investors should remain alert as risk aversion sweeps across the markets. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

XRP Weekly Chart sends bullish price signals.

XRPUSD 050824 Weekly Chart

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending the bearish price signals.

A return to the $0.50 handle would support a move toward the 200-day and 50-day EMAs. Furthermore, a breakout from the 50-day EMA could give the bulls a run at the $0.5739 resistance level.

SEC vs. crypto case-related news would require consideration.

Conversely, a drop below the trend lines could signal a fall below the $0.45 handle.

With a 14-day RSI reading of 34.40, XRP could drop below the trend lines before entering oversold territory.

Daily Chart sends bearish price signals.

XRPUSD 050824 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.