XRP News Today: SEC Targets Programmatic Sales Ruling – Will XRP Break $0.55?

XRP Hovers Below $0.55 as SEC Appeal Speculation Intensifies

On Friday, October 18, XRP advanced by 0.62%, recovering a 0.68% loss from the previous session to close at $0.5474.

Despite the gains, XRP stayed below the crucial $0.55 level, reflecting ongoing pressure from the SEC’s targeting of the Programmatic Sales of XRP ruling. Meanwhile, the broader crypto market advanced by 1.53%, taking the total market cap to $2.294 trillion.

SEC Court Filing Affirms Programmatic Sales of XRP Challenge

On Friday, October 18, speculation about the Securities and Exchange Commission’s (SEC) goals in the SEC vs. Ripple case intensified. The SEC filed the Civil Appeal Pre-Argument Statement (Form C) and addenda on October 17, one day after the October 16 deadline.

The filing ended the debate about whether the SEC will Judge Analisa Torres’s ruling from July 2023. Judge Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

The SEC’s Form C shows that the SEC will challenge the Programmatic Sales of XRP ruling, potentially impacting XRP demand.

Before the filing, views were divided on whether the SEC would appeal the ruling. In an August 2024 interview with CryptoLaw, (6:46) Ripple Chief Legal Officer Stuart Aldoroty said:

“XRP status as a not a security and the secondary market trading of XRP as not security transactions, that is the law of the land and that does not change even if the SEC appeals, and I would ask everyone to focus on that.”

Will the SEC Appeal Impact XRP-spot ETF Launches?

This week, Grayscale joined the race to target XRP investors by applying to convert its Digital Large Cap Fund (GDLC) into a crypto-spot ETF. The proposed crypto-spot ETF would include BTC, ETH, AVAX, SOL, and XRP. While GDLC will likely hold less than 10% in AVAX, SOL, and XRP, Bitwise and Canary Funds have filed applications for XRP-spot ETFs.

Despite the applications, XRP price action remains subdued. Investors appear to be pricing in a high probability that the SEC will either delay or disapprove the applications while the appeal proceeds.

In November 2023, XRP briefly surged to $0.7501 on rumors of BlackRock’s (BLK) filing for an XRP-spot ETF. However, when BlackRock denied the rumors, XRP dropped back below $0.60.

XRP Price Outlook: SEC Appeal in Focus

The SEC’s appeal against the Programmatic Sales of XRP ruling could put XRP’s future in uncertainty. US exchanges could delist XRP if the SEC successfully appeals the ruling, impacting demand. As the appeal progresses, market speculation will likely influence XRP price trends, assuming the courts accept the SEC’s late submission.

The opening and opposition briefs from both parties will be crucial. XRP could drop below $0.50 if the SEC offers convincing arguments against the Programmatic Sales ruling. Conversely, XRP could break out from $0.60 if the courts reject the SEC’s late filing.

In July 2023, XRP rallied to a high of $0.9327 in response to the Programmatic Sales ruling.

Outlook

Investors should keep an eye on any updates surrounding the SEC appeal, as they could trigger significant price shifts. Stay informed with our latest news and analysis to better manage your XRP and broader crypto market exposure.

XRP Price Action

Daily Chart

XRP remains below the 50-day and 200-day EMAs, confirming bearish price trends.

A break above the 200-day and 50-day EMAs could signal a move toward the $0.5739 resistance level. Furthermore, a breakout from the $0.5739 resistance level may allow the bulls to test the $0.6609 resistance level.

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

Conversely, a drop below the $0.50 level could signal a fall toward the trend lines.

With a 14-day RSI reading of 48.53, XRP may break below $0.50 before entering oversold territory.