XRP News Today: SEC vs. Ripple Case Outcome Predictions Unveiled

The Sunday Overview

On Sunday, XRP declined by 2.68%. Partially reversing a 7.20% rally from Saturday, XRP ended the session at $0.6277. Significantly, XRP ended a three-session winning streak.

XRP Remains Susceptible to Profit-Taking

There were no SEC v Ripple case-related updates for investors to consider on Sunday. The SEC and Ripple are preparing remedy-related briefs. The remedy-related briefs give the SEC and Ripple the medium to argue for and against a punitive penalty. In July 2023, Judge Analisa Torres ruled Ripple sold unregistered XRP securities to US institutional investors.

Ripple will use US legal precedent to argue for a reduced penalty considering the lack of fraud. In contrast, the SEC wants a punitive penalty as a deterrent. Another reason could be to salvage credibility after the ruling on Programmatic Sales of XRP. In the July rulings, Judge Torres ruled programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Notably, the Terraform Labs ruling may have incentivized the SEC to pursue an appeal against the Programmatic Sales ruling. Judge Rakoff ruled that Luna and TerraUSD are securities. The lingering SEC threat to appeal against the Programmatic Sales ruling remains an XRP headwind.

However, rulings from other SEC cases against crypto firms could pour cold water on plans to appeal.

SEC v Coinbase: Motion to Dismiss Ruling on the Horizon

Coinbase (COIN) filed a Motion to Dismiss (MTD) in August 2023, arguing the SEC lacked the statutory authority to regulate crypto exchanges.

The Motion to Dismiss relates to SEC charges alleging Coinbase operated as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

Significantly, if Judge Katherine Failla grants the MTD, the courts could force the SEC to step back from regulating crypto exchanges through enforcement. It could also set a precedent for the listed cryptos in the case that the SEC alleges are securities.

Legal experts believe that if the judge grants the MTD, the SEC will settle the SEC v Ripple case.

According to the SEC v Ripple court briefing schedule, Judge Torres will begin deliberating on the penalty after May 6. A court ruling on the Coinbase MTD before May 6 could swiftly conclude the SEC v Ripple case. An SEC settlement would remove the chance of appealing against the Programmatic Sales of XRP ruling.

XRP Price Action

Daily Chart

XRP sat well above the 50-day and 200-day EMAs, affirming bullish price signals. Additionally, the 50-day EMA crossed above the 200-day EMA, another bullish signal.

An XRP break above the $0.6354 resistance level would support a move toward the $0.7047 resistance level.

BTC-spot ETF-related news and SEC v crypto-related updates need consideration.

However, if the price falls below the $0.6250 handle, it could prompt bearish momentum toward the $0.5835 support level.

The 14-day RSI reading, 68.33, suggests an XRP break above the $0.6354 resistance level before entering overbought territory.

4-Hourly Chart

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

An XRP breakout from the $0.6354 resistance level would give the bulls a run at the $0.7047 resistance level.

However, a drop below the $0.62 handle would bring the $0.5835 support level into play.

The 4-hourly RSI, with a reading of 58.78, indicates an XRP move to the $0.65 handle before entering overbought territory.