XRP News Today: SEC vs. Ripple Tensions Rise – Can XRP Rebound from $0.59?

XRP Drops Below $0.59 Amid Appeal Jitters

On Sunday, September 22, XRP declined by 1.62%, partially reversing a 2.28% gain from the previous session to close at $0.5882. Significantly, XRP underperformed the broader market, which fell by 0.30%, pulling the total market cap down to $2.166 trillion.

SEC vs. Ripple: The Two-Week Appeal Countdown

Speculation about a possible SEC appeal against rulings in the SEC vs. Ripple case intensified over the weekend, impacting XRP demand. In response to the final judgment on August 7, XRP initially climbed to a high of $0.6434 before retreating. Recent price trends suggest that investors anticipate a last-minute SEC appeal.

Pro-crypto lawyer Fred Rispoli recently shared his views about the chances of an SEC appeal, stating,

“Well, the odds have increased of an appeal. Ripple and SEC have agreed to an arrangement where 111% of monetary judgment will be held in trust, to be paid to SEC only on (1) 30 days after appeal deadline or (2) after appeal concludes. This is not a guarantee that there will be an appeal, but putting that kind of money in a trust is not something that is done unless SEC is being evasive to Ripple lawyers as to whether it intends on appealing. Again, still possible that no appeal happens but odds have increased.”

When asked about the probability of an appeal, Rispoli gave 60:40 odds in favor of an appeal. The SEC has until October 7 to file. While the SEC may file a last-minute appeal, there is plenty of debate over which rulings the agency will contest.

Ripple Case Heats Up: What’s Next?

On July 13, 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. The SEC attempted to appeal the ruling by filing an interlocutory motion in August 2023. However, Judge Torres rejected the motion in October 2023. The court ruling meant that the SEC had to wait until the case concluded before appealing rulings.

Notably, there is uncertainty about whether the SEC will appeal the Programmatic Sales of XRP ruling.

On September 13, Ripple Chief Legal Officer Stuart Alderoty announced,

“Ripple’s case is over, but the fair notice defense is still alive for others.”

Alderoty reacted to an SEC filing in the SEC vs. Binance case, where the SEC clarified its position vis-à-vis cryptos as securities. However, the SEC did not state that cryptos, relating to the Binance case, were not securities in secondary sales, clearly stating,

“The SEC’s allegations with respect to the Ten Crypto Assets at issue in secondary markets are that their promotions and economic realities have not changed in any meaningful way under Howey, such that they continue to be offered and sold as investment contracts.”

Former SEC Attorney’s Views on the SEC’s Appeal Strategy

Former SEC attorney Marc Fargel previously commented on the agency’s possible appeal strategy, stating,

“But as a technical matter, they are appealing the claim they lost below (i.e. the argument that the programmatic sales violated the law). In assessing that, the Court of Appeals could conclude the district court erred in stating that XRP is not itself a security; and if it is, then the holding on programmatic sales gets reversed. But they could also reverse the programmatic sales without addressing the question of XRP being a security per se (as seems more likely).”

Fargel emphasized that the SEC may not question whether or not XRP is a security, which would align with the agency’s position in the Binance case.

XRP Price Trends Hinged on SEC Appeal Plans

Price trends hinge on whether the SEC appeals rulings from the Ripple case. If the SEC appeals, XRP could drop toward $0.40. Conversely, if the SEC does not file an appeal, XRP could target $1.00, mirroring the market’s response to the Programmatic Sales of XRP ruling.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

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

A return to $0.60 would support a move toward the September 21 high of $0.6128. Furthermore, a breakout from $0.6128 could give the bulls a run at the post-final judgment high of $0.6434.

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

Conversely, a drop below the $0.5739 support level may signal a fall toward the 50-day and 200-day EMAs. A break below the EMAs would signal a bullish trend reversal and indicate a possible fall toward the $0.50 level.

With a 14-day RSI reading of 56.24, XRP could climb to the $0.65 level before entering overbought territory.