XRP News Today: Ripple’s Legal Battles and SEC Appeal Threats Cloud XRP’s Future

The Tuesday Overview

On Tuesday, June 18, XRP declined by 2.65%. Partially reversing a 3.19% rally from Monday, June 17, XRP ended the session at $0.4914.

SEC vs. Ripple: Settlement Hopes Likely to Fade

There was no SEC vs. Ripple case-related news to influence buyer demand for XRP on Tuesday.

The absence of SEC vs. Ripple case-related news on Tuesday likely reduced investor hopes of a settlement following the recent court filings.

On Friday, the SEC filed its response to the Ripple Notice of Supplemental Authority. The SEC offered a calculation based on the settlement with Terraform Labs. The calculation suggested a significantly lower penalty than the almost $2 billion proposed in its remedies-related opening brief.

However, the basis of the calculation was to contest the Ripple proposal for a $10 million penalty for breaching US securities laws. The calculation did not appear to be a counter-proposal.

The crypto market community interpreted a post from Ripple Chief Legal Officer Stuart Alderoty as an SEC proposal for a $102.6 million settlement.

Ripple has not yet responded to the SEC’s reply regarding the Notice of Supplemental Authority. Ripple faces the possibility of a $2 billion penalty and an injunction prohibiting XRP sales to US institutional investors.

Apart from the Ripple case outcome, the SEC’s threats of appealing against the Programmatic Sales of XRP ruling persists.

SEC Settlement and Plans to Appeal Against the Programmatic Sales of XRP Ruling

In October 2023, Judge Anlisa Torres rejected an SEC Motion for Interlocutory Appeal. The SEC filed the Motion for Interlocutory Appeal in August to overturn the Programmatic Sales of XRP ruling.

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

Significantly, the court decision on the Motion for Interlocutory Appeal meant that the SEC must wait until the end of the Ripple case to file any appeals. A settlement would end SEC plans to appeal against the Programmatic Sales of XRP ruling, questioning investor optimism toward a settlement.

The SEC plans for an appeal remains a headwind for XRP. Furthermore, the SEC could drag its heels on approving an XRP-spot ETF until the end of the appeals process.

Beyond the SEC vs. Ripple case and appeal plans, uncertainty about the Fed rate path contributed to the losses. FOMC Members appeared to be in wait-and-see mode vis-à-vis interest rate cuts despite recent US inflation and retail sales raising hopes of a more dovish Fed rate path.

XRP Price Action

Daily Chart

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

An XRP move through the trend lines could give the bulls a run at the 50-day EMA. A break above the 50-day EMA could signal a move to the 200-day EMA.

SEC vs. Ripple case-related news requires investor attention.

Conversely, an XRP drop below the $0.48 handle could give the bears a run at the $0.45 handle.

With a 14-day RSI reading of 45.67, XRP may drop to the $0.45 level before entering oversold territory.