XRP News Today: SEC Appeal Filing Could Push XRP Below $0.50

XRP Eyes Sub-$0.50 on SEC Appeal Filing

On Thursday, October 3, XRP declined by 3.08%, following Wednesday’s 9.78% tumble, to close at $0.5222. XRP continued underperforming the broader crypto market, which dipped by 0.15% to a total market cap of $2.062 trillion.

SEC Appeal Notice: Which Rulings Will the SEC Challenge?

On Wednesday, October 2, the SEC filed a Notice of Appeal, advising the Second Circuit Court of Appeals of its intent to appeal rulings in the SEC v Ripple case. On Thursday, market speculation about the rulings the agency plans to challenge intensified.

Pro-crypto lawyer James ‘MetaLawMan’ Murphy shared an August 8 interview, where he predicted the SEC might target two crucial rulings:

• Disgorgement ruling – In the final judgment, Judge Analisa Torres granted the SEC’s request for a civil monetary penalty in part ordering XRP to pay $125 million. However, Judge Torres denied the SEC’s request for disgorgement of $1.1 billion. Murphy had previously considered the disgorgement component of the final judgment a blow to the SEC.
• 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. The SEC challenged the ruling in August 2023 by filing a Motion for Interlocutory Appeal. However, Judge Torres rejected the Motion in October 2023, meaning the SEC had to wait until the final judgment before filing an appeal.

A former SEC lawyer recently highlighted the agency’s stance on the Programmatic Sales ruling, saying,

“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.”

A successful appeal could have broader implications for other ongoing cases, including those involving Coinbase (COIN), Binance, and Kraken.

SEC and Ripple Filings in Focus

Fox Business journalist Eleanor Terrett commented on the SEC’s next move in the appeal process, stating,

“The SEC has not filed its Form C with the Second Circuit yet, which will detail what exactly they’re appealing. They need to do that pronto so that Ripple knows how to proceed. Ripple also has 14 days from today to file a cross-appeal if they choose to.”

The crypto legal community expects Ripple to cross-appeal. Pro-crypto lawyer Bill Morgan reacted to Terrett’s comments, stating,

“I find it difficult to believe Ripple will not file a cross-appeal.”

Former SEC lawyer Marc Fagel agreed, saying that he couldn’t see any downside to a cross-appeal.

The Form C filing and Ripple’s response will be crucial for XRP price trends.

XRP Price Trends: What’s Next?

Investors await the SEC filing to understand which rulings the agency will challenge. Price trends will likely hinge on speculation about the SEC’s appeal strategy and the court filing. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40.

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

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

An XRP breakout from $0.55 could give the bulls a run at the 200-day EMA. Furthermore, a break above the 200-day EMA may signal a move toward the 50-day EMA and the $0.5739 resistance level. Selling pressure may increase at the $0.5739 resistance level as the 50-day EMA is confluent with it.

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

Conversely, a break below Thursday’s $0.5075 low could bring the trend lines into play.

With a 14-day RSI reading of 36.16, XRP may fall to $0.50 before entering oversold territory.