XRP News Today: Market Worries Over SEC Appeal Push XRP Below $0.56

XRP Drops Below $0.56

On Thursday, August 29, XRP declined by 1.35%, reversing a 0.44% gain from the previous day, closing at $0.5622. XRP bucked the broader crypto market trend, which rose by 0.20% to a total market cap of $2.043 trillion.

SEC Appeal Uncertainty Weighs on XRP

Speculation about an SEC appeal in the SEC vs. Ripple case impacted XRP demand on Thursday. Judge Analisa Torres issued the final judgment on August 7, which gave both parties a 60-day window to appeal.

Since the final judgment, the SEC has remained largely silent, leaving XRP on the back foot.

Legal Perspectives on Ripple and Related Cases

Bill Morgan, a pro-crypto lawyer, remarked on recent court rulings that challenge the SEC’s classification of cryptos as securities, stating,

“Judge Torres in SEC v Ripple told the SEC that the XRP token itself is not a security.”

Referring to the recent Kraken ruling, Morgan remarked,

“Judge Orrick in SEC v Payward Inc (Kraken case) told the SEC that “orange groves are no more securities than cryptocurrency tokens are” he also gave the SEC a warning about distinguishing between the nature of the crypto asset itself and sales of the asset.”

Morgan also commented on the SEC vs. Binance ruling, saying,

“In SEC v Binance Judge Jackson completely rejected the SEC’s embodiment theory that the crypto token is the embodiment of an investment contract rather than possibly in certain circumstances being the subject of an investment contract.”

Morgan wrapped up his analysis, asking,

“How many more judicial comments are needed of this kind before the SEC jettisons the discredited embodiment theory or any forlorn hope the courts will ever regard the crypto asset itself as a security?”

Despite the recent rulings, the SEC continues its regulatory actions against the US digital asset space.

OpenSea Wells Notice and Market Reaction

On Wednesday, the SEC issued a Wells Notice to OpenSea, the Non-Fungible Token (NFT) marketplace, alleging that NFTs on its marketplace are securities. Co-founder and CEO Devin Finzer reacted to the Wells Notice, saying,

“We’re shocked the SEC would make such a sweeping move against creators and artists.”

On Thursday, Ripple Chief Legal Officer Stuart Alderoty remarked,

“Fun fact: In 1976, the SEC ruled that art galleries, even when promoting and selling to buyers that had investment motives, didn’t need to register with the SEC.”

The OpenSea Wells Notice underscores the SEC’s unwavering assault on the US digital asset space, placing more significance on the US Presidential Election. A Kamala Harris victory could empower Chair Gensler and the SEC to intensify its regulation of the crypto space through the courts.

XRP Price Trend Hinges on SEC Appeal Plans

The price trend will depend on whether the SEC decides to appeal. If the SEC appeals, XRP could fall below $0.40. Conversely, if the SEC remains silent until after the appeal window, XRP could return to $1.00, similar to the surge following the Programmatic Sales of XRP ruling.

Uncertainty about the SEC’s plans will likely leave XRP under pressure.

Investors should remain vigilant as appeal-related news will likely influence XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP hovered below the 50-day EMA while remaining above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

A break above the 50-day EMA would support a move to the $0.5739 resistance level. Furthermore, a breakout from the $0.5739 resistance level could give the bulls a run at $0.60.

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

Conversely, an XRP drop below the 200-day EMA would affirm a bullish trend reversal and a possible break below $0.50.

With a 14-day RSI reading of 46.00, XRP could fall to $0.50 before entering oversold territory.