XRP News Today: SEC Appeal Risks Amidst Coinbase Challenge – What’s Next?

The Tuesday Overview

On Tuesday, XRP slid by 4.86%. Partially reversing an 18.74% surge from Monday, XRP ended the session at $0.6877.

SEC vs. Ripple: SEC vs. Coinbase Remains the Focal Point

There were no SEC v Ripple case-related updates to consider on Tuesday. The SEC and Ripple are preparing remedy-related briefs to argue for and against a punitive penalty for XRP sales to US institutional investors.

The SEC must file its remedy-related brief by March 22 and Ripple by April 22. The remedy-related briefs could give insights into the likely outcome of the SEC v Ripple case.

While the outcome needs consideration, SEC plans to appeal against the Programmatic Sales of XRP remains the focal point. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

A settlement would end SEC plans to appeal the ruling. However, hopes for a settlement have diminished as the SEC v Ripple case nears a conclusion. Fading hopes of a settlement have shifted focus to the SEC v Coinbase (COIN) case. A Coinbase victory may significantly alter SEC plans to appeal against the Programmatic Sales ruling.

Immediate investor attention is on the Coinbase Motion to Dismiss (MTD). In August 2023, Coinbase filed an MTD, arguing the SEC lacks the statutory authority to regulate crypto exchanges. If Judge Katherine Failla grants the MTD, legal precedence could end the SEC reign of regulation through enforcement. More importantly, an SEC loss may force the SEC to settle the Ripple case.

Coinbase Petition for Ruling Making and Conflicting SEC Statements

On Tuesday, Ripple Chief Legal Officer Stuart Alderoty shared a post from Coinbase Chief Legal Officer Paul Grewal. Paul Grewal posted highlights from the Coinbase filing to contest the SEC decision to deny the rulemaking petition, saying,

“Don’t want to read our entire 78-page brief in our Third Circuit suit against the SEC? Just read this to understand how broken the Commission’s approach has been.”

Notably, Grewal highlighted conflicting statements on whether a digital asset is a security. Conflicting SEC statements justify the filing to contest the denial. Notably, the rulemaking petition outcome may also influence SEC v crypto cases.

The SEC continues to target the US digital asset space despite no regulatory framework to offer transparency.

XRP Price Action

Daily Chart

XRP remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

A break above the $0.7047 resistance level would support a return to the March 11 high of $0.7487.

SEC v crypto case-related updates need consideration.

However, a fall to the $0.6354 support level would bring the 50-day EMA and the $0.5835 support level into play.

The 14-day RSI reading, 64.10, indicates an XRP return to the March 11 high of $0.7487 before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day and 200-day EMAs, affirming the bullish price signals.

An XRP breakout from the $0.7047 resistance level would bring the $0.7812 resistance level into play.

However, a drop below the $0.65 handle would give the bears a run at the 50-day EMA and the $0.63544 support level.

The 4-hourly RSI, with a reading of 60.23, suggests an XRP return to the March 11 high of $0.7487 before entering overbought territory.