XRP News Today: SEC vs. Ripple Case and Appeal Plans Unravel XRP’s Path

The Sunday Overview

On Sunday (April 28), XRP fell by 1.51%. Following a 1.58% loss on Saturday (April 27), XRP ended the session at $0.5101.

SEC vs. Ripple: The SEC Opposition Brief Filing

On Monday (April 29), the SEC vs. Ripple case will take center stage. The SEC must file its opposition brief to Ripple’s Motion to Strike expert testimony.

In March, the SEC offered new expert testimony in its opening brief, supporting arguments for a punitive penalty and an injunction. The injunction would prohibit Ripple from selling XRP to institutional investors. Significantly, the testimony related to Ripple’s post-complaint activity and analysis of its financial statements.

In its opening brief, the SEC argued Ripple continued to breach US securities laws after the SEC filed charges in December 2020 (post-complaint). In its Motion to Strike, Ripple argued the SEC did not disclose the identity of the expert witness or testimony during discovery.

If the court grants the Motion to Strike, the SEC cannot provide new testimony regarding Ripple’s post-complaint activity and financial statement analysis to pursue a punitive penalty.

The court ruling could influence market sentiment toward the SEC vs. Ripple case. Nevertheless, the SEC’s reply brief will impact buyer demand for XRP more.

The SEC will file a reply brief in response to Ripple’s opposition brief. Sound arguments against Ripple’s opposition brief could raise expectations of a punitive disgorgement and injunction. An injunction could materially impact Ripple’s expansion plans for the US market and demand for XRP. The SEC must file its reply brief by May 6.

After the May 6 filing, the court will decide on the penalty size and whether an injunction is appropriate. The court may deliver a ruling before September 2024. Investors expect the SEC to appeal the Programmatic Sales of XRP ruling at the end of the case.

However, external forces could influence the timeline for a ruling. An ongoing investigation into possible financial conflicts of interest within the SEC relates directly to the SEC vs. Ripple case.

Office of Inspector General Investigation into the SEC

In February, US government watchdog Empower Oversight announced the Inspector General was close to ending its investigation into alleged crypto conflicts of interest within the SEC. The investigation involves former SEC director William Hinman, a central figure in the Ripple case.

Hinman famously said that Bitcoin (BTC) and Ethereum (ETH) were not securities in 2018. Hinman formerly worked with the law firm Simpson Thacher. Simpson Thacher was part of a group Ethereum Enterprise that promoted Ethereum. Hinman returned to Simpson Thacher after leaving the SEC.

Court documents revealed that Hinman continued meeting with Simpson Thacher despite warnings from the SEC Ethics Division. Empower Oversight filed a lawsuit against the SEC in 2021, claiming SEC officials were biased against Ripple Labs and XRP. Empower Oversight also claimed Hinman received millions of dollars from Simpson Thacher.

XRP Price Action

Daily Chart

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

An XRP breakout from the bottom and top trend lines would support a move to the 50-day EMA. A break above the 50-day EMA could give the bulls a run at the 200-day EMA and $0.5739 resistance level.

SEC vs. Ripple case-related updates and SEC activity need consideration.

Conversely, an XRP drop below the $0.50 handle could signal a fall toward the $0.48 handle.

The 14-day RSI reading, 40.83, indicates an XRP fall to the $0.48 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the bottom and top trend lines and the 50-day EMA could give the bulls a run at the $0.5361 resistance level. A breakout from the $0.5361 resistance level could signal a move toward the 200-day EMA.

Selling pressure could intensify at the top trend line. The 50-day EMA is confluent with the top trend line.

Conversely, an XRP fall through the $0.50 handle would bring the $0.48 handle into play.

The 14-day RSI reading, 42.52, suggests an XRP fall to the $0.48 handle before entering oversold territory.