XRP News Today: Ripple Faces Uncertainty – Can XRP Hold $0.60 Support?

XRP Drops as SEC Appeal Looms, Market Braces for $0.60

On Monday, September 30, XRP slid by 4.60%, reversing Sunday’s 4.29% rally, closing at $0.6120. Significantly, XRP underperformed the broader market, which declined by 3.21% to a total market cap of $2.181 trillion.

SEC Appeal Deadline Approaches

The US digital asset space remains in limbo as investors await the crucial October 7 deadline for appeal filings in the SEC v Ripple case. On August 7, Judge Analisa Torres delivered her final judgment, fining Ripple $125 million for unregistered XRP sales to institutional investors. The penalty fell short of the SEC’s demand for $2 billion. Furthermore, Judge Torres did not grant the SEC’s request for an injunction prohibiting XRP sales to institutional investors.

While Ripple may have managed to pay a $2 billion penalty, an injunction could have materially impacted its US expansion plans.

The SEC could appeal the penalty, the absence of an injunction, or both. However, legal experts expect the SEC to more likely target the Programmatic Sales ruling instead. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Why would the SEC appeal the Programmatic Sales of XRP Ruling?

Last week, Fox Business journalist Eleanor Terrett shared details of a conversation with a former SEC lawyer, stating,

“A former SEC lawyer who recently left the agency tells me the SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the XRP programmatic sales in the Ripple case partly because: ‘everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”

Former SEC attorney Marc Fagel also supported the idea of an SEC appeal against the Programmatic Sales of XRP ruling. However, Fagel emphasized that whether XRP is in itself a security may not be part of the SEC’s appeal strategy, aligning with the agency’s recent filing in the Binance case.

What Are the Chances of an SEC Appeal?

Pro-crypto lawyer Fred Rispoli recently raised the chances of an SEC appeal, saying,

“I’m 60/40 rn (right now) in favor of seeing an SEC notice of appeal but the stakes are really high for the SEC. Letting it slide (no appeal) means that “programmatic sales” is a one-off loss that literally only applies to Ripple’s secondary sales and is a distinguishable SDNY loss for the SEC.”

XRP Price Trends Tied to SEC Appeal

Uncertainty about SEC plans to appeal rulings in the Ripple case remains an XRP headwind. 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

Can XRP Hold Above $0.60 as Legal Uncertainty Grows? Despite Monday’s pullback, XRP remains above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP return to $0.65 could signal a move toward the $0.6609 resistance level and the September 29 high of $0.6655. Furthermore, a breakout from $0.6655 may bring the $0.70 level into play.

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

Conversely, a break below $0.60 could signal a drop toward the 50-day EMA and the $0.5739 support level. A fall through the $0.5739 support level may give the bears a run at the 200-day EMA.

With a 14-day RSI reading of 58.41, XRP may return to $0.6655 before entering overbought territory.