XRP News Today: Ripple Faces Uncertainty as SEC Appeal Speculation Intensifies

XRP Slides on Appeal Uncertainty

On Friday, August 9, XRP slid by 5.91%, ending the session at $0.5808. The decline reversed a 2.90% gain on Thursday, August 8. Significantly, XRP saw more losses than the broader market, which fell by 1.67% to a total market cap of $2.081 trillion.

SEC vs. Ripple: Will the SEC Appeal?

Speculation about an SEC appeal against rulings from the SEC vs. Ripple case intensified going into the weekend.

On Wednesday, Judge Analisa Torres ordered Ripple to pay a $125,035,150 civil penalty for violating US securities laws by selling unregistered XRP to institutional investors. Judge Torres also granted the SEC’s request for an injunction prohibiting XRP sales to institutional investors.

The ruling ended hopes of a settlement, exposing XRP to the possibility of an SEC appeal against 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.

Ripple Chief Legal Officer Stuart Alderoty discussed the verdict, saying,

“We’re feeling really good about it. […] Trying to establish that a token itself, in this case, XRP, can be considered a security was soundly rejected by the court. And what the court said is a token is never a security […] and that’s the core clarity that we sought in this […].”

Alderoty added that Ripple will pay the fine within 30 days and hoped the US administration,

“Will turn the page on their war on crypto and hit the reset button.”

Asked about the possibility of an SEC appeal, Alderoty said,

“The SEC certainly has the option to pursue an appeal. I think they’ve got 60 days to make that determination. But again, we’re focused on the finality that this order gives Ripple and we want to focus on growing our business both globally and domestically. We like the clarity that this lawsuit and the outcome of this lawsuit has provided to us and that’s where we’re going to be focused on. And if the SEC is a rational actor, and this administration is truly serious about hitting the reset button on their war on crypto, there should be no appeal and everybody should be moving on.”

SEC vs. Ripple: Motion for Interlocutory Appeal

Uncertainty about the possibility of an SEC appeal will likely linger as the SEC considers its options.

In August 2023, the SEC filed a Motion for Interlocutory Appeal against the Programmatic Sales ruling, highlighting its dissatisfaction. Judge Torres rejected the SEC’s Motion in October 2023, forcing the SEC to consider an appeal after the final judgment.

An appeal against the Programmatic Sales ruling could adversely impact XRP demand.

Court Rulings and XRP Price Trends

The market response to the SEC vs. Ripple court verdict was relatively tame compared to the previous rulings.

In July 2023, XRP surged to a high of $0.9327 following the Programmatic Sales of XRP ruling but fell below $0.50 over fears of an SEC appeal. On Wednesday, August 7, 2024, XRP climbed to a high of $0.6437 in reaction to the final verdict before retreating.

Investors should remain alert, as appeals could adversely impact 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 comfortably above the 50-day and 200-day EMAs, confirming the bullish price trends.

A return to $0.60 would support a move toward Wednesday’s high of $0.6437. A breakout from $0.6437 could give the bulls a run at the $0.6609 resistance level.

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

Conversely, a break below the $0.5739 support level could signal a drop to the 50-day and 200-day EMAs.

With a 14-day RSI reading of 53.82, XRP could climb to $0.70 before entering overbought territory.