XRP News Today: SEC vs. Ripple – Ruling Leaves Investors Wary as Appeal Threat Looms

XRP Price Trends Send Mixed Signals

On Thursday, August 8, XRP advanced by 2.90%. Following an 18.28% surge from Wednesday, August 7, XRP closed at $0.6173. Significantly, XRP trailed the broader market, as the total crypto market cap jumped by 11.05% to $2.116 trillion.

SEC vs. Ripple: The SEC Statement

On Wednesday, Judge Analisa Torres delivered a punitive SEC vs. Ripple court verdict, ending investor hopes for a settlement. The severity of the ruling and the SEC statement suggested the SEC may not appeal the remedies-related ruling.

The SEC gave Fox Business Journalist Eleanor Terrett a statement on the ruling, saying,

“The Court granted the SEC’s motion for remedies including an injunction barring Ripple from committing additional violations of the securities laws and significant civil monetary penalties totaling more than 12 times the amount Ripple suggested was appropriate. […] The Court also addressed ‘the egregiousness of Ripple’s conduct’ and noted that ‘there is no question that the recurrent, highly lucrative violation of Section 5 is a serious offense.”

On Wednesday, Ripple CEO Brad Garlinghouse also lauded the verdict, claiming the penalty was a victory. Considering the reactions from both sides, an appeal against the remedies-related verdict is unlikely.

However, the SEC could appeal against the Programmatic Sales of XRP ruling.

Programmatic Sales of XRP: Will the SEC Appeal?

On July 13, 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

In August 2023, the SEC responded to the court ruling by filing a Motion for Interlocutory Appeal. However, Judge Torres rejected the SEC’s Motion in October 2023. The rejection meant the SEC had to wait until the final verdict to file appeals against the court rulings.

The Motion for Interlocutory Appeal and the SEC’s attempt to expedite the remedies-related part of the Ripple case may indicate an imminent appeal.

As background, the SEC dropped the charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse shortly after the court rejected the Motion for Interlocutory Appeal. At the time, the legal community speculated that the SEC dropped the charges against Ripple’s executives to prepare for an appeal.

An appeal against the Programmatic Sales ruling would adversely affect XRP price trends.

SEC vs. Ripple Rulings and XRP Trends

XRP extended its winning streak to three sessions on Thursday. However, investor reaction to the SEC vs. Ripple court verdict was relatively muted compared to previous court rulings.

On Wednesday, XRP climbed to a high of $0.6437 as investors reacted to the verdict before retreating. In contrast, on July 13, 2023, XRP surged to a high of $0.9327 in response to the Programmatic Sales of XRP ruling.

Notably, XRP dropped below $0.50 in August 2023 due to increased concerns over an SEC appeal against the Programmatic Sales ruling.

An SEC appeal against the Programmatic Sales ruling could see XRP give up its remedies-related verdict gains. The SEC will have 30 days to file an appeal.

Investors should remain alert, as appeals could adversely impact XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

A break above the Wednesday high of $0.6437 could signal a move toward the $0.6609 resistance level. A breakout from the $0.6609 resistance level would bring the $0.70 handle into play.

SEC vs. Ripple case-related activity requires consideration.

Conversely, a drop below the $0.5739 support level could bring the 50-day and 200-day EMAs into play. A fall through the EMAs could give the bears a run at the trend lines.

With a 14-day RSI reading of 58.04, XRP may return to $0.70 before entering overbought territory.