XRP News Today: SEC vs. Ripple Sparks Investor Concern, XRP Forecast Uncertain

The Friday Overview

On Friday (June 7), XRP tumbled 4.29%. Following a 0.72% loss on Thursday (June 6), XRP ended the session at $0.4993.

XRP Movements and the Crypto Rumor Mill

There was no SEC vs. Ripple case-related news to impact buyer demand for XRP. However, investors reacted to reports of Ripple moving 200 million XRP to its Treasury Account and 200 million to its sell-off reserves.

The 400 million XRP movements fueled speculation Ripple may abandon XRP. Ripple Chief Technology Officer David Schwartz fed the crypto rumor mill with a post on X (formerly Twitter),

“When a scrappy financial startup takes on a web of corruption and betrayal to bring instant payments to the masses, they learn that the cost of disrupting the status quo is higher than they could ever have imagined, forcing them to decide between their vision and their survival.”

The post read like a biography of Ripple’s increasing success outside of the US and the possible ramifications of a $2 billion penalty and injunction in the US.

Ripple expects a court verdict on breaching US securities laws in the coming months. In March, the SEC pressed the courts for an almost $2 billion penalty and an injunction prohibiting XRP sales to institutional investors.

In April, Ripple argued in favor of a $10 million penalty, pleading that there were no allegations of fraud or recklessness.

A punitive disgorgement and an injunction could impact Ripple and buyer appetite for XRP.

However, US economic indicators and shifting sentiment toward the Fed rate path contributed to the losses.

US Jobs Report Dampens Investor Expectations of a September Rate Cut

On Friday (June 7), a hotter-than-expected US Jobs Report impacted buyer demand for riskier assets. Average hourly earnings unexpectedly accelerated, with nonfarm payrolls surging 272k in May. The US Jobs Report reduced bets on a September Fed interest rate cut.

Nevertheless, XRP saw heavier losses than the broader crypto market. On Friday, the total crypto market cap declined by 2.87% to $2,483 billion.

XRP Price Action

Daily Chart

XRP sat well below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP break above the top trend line would support a move to the 50-day EMA. A breakout from the 50-day EMA could signal a move toward the 200-day EMA.

SEC chatter and SEC vs. crypto case-related updates need consideration.

Conversely, a break below the bottom trend line could signal a fall to the $0.48 handle.

The 14-day RSI reading, 38.84, indicates an XRP drop to the $0.48 handle before entering oversold territory.