XRP News Today: SEC vs. Ripple Verdict Approaches, Market Braces for Impact

XRP Retakes $0.60 as Crypto Market Rises

On Sunday, July 28, XRP advanced by 1.01%. Partially reversing a 1.16% from Saturday, July 27, XRP ended the week up 0.75% to $0.6024. XRP joined the broader market in positive territory on Sunday, with the total market cap rising by 0.29% to $2.373 trillion.

SEC vs. Ripple: Verdict Pending

The ongoing SEC vs. Ripple case will be in the spotlight this week. A final court verdict looms as settlement hopes fade.

Judge Analisa Torres must decide the penalty Ripple has to pay for selling unregistered XRP to institutional investors. The penalty will draw investor interest after the SEC pushed for a $2 billion penalty and an injunction.

An injunction prohibiting XRP sales to institutional investors could impact US expansion plans. XRP may face intense selling pressure if Judge Torres grants the SEC’s request for an injunction.

Crucially, an injunction may incentivize the SEC to appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

SEC Appeal Against Programmatic Sales Ruling

Recent SEC vs. crypto case-related court rulings raised uncertainty about the SEC’s plans to appeal against the Programmatic Sales of XRP ruling.

In December 2023, Judge Jed Rakoff ruled Terraform Labs and Do Kwon breached US securities laws by failing to register TerraUSD and Luna as securities. Before the December court ruling, Judge Rakoff openly criticized Judge Torres’s Programmatic Sales ruling, saying Judge Torres made a mistake when declaring XRP was not a security when sold on exchanges.

It was a significant win for the SEC, raising expectations of the SEC appealing the Programmatic Sales ruling.

However, Judge Amy Berman Jackson, presiding over the SEC vs. Binance case, may have influenced the SEC’s plans.

In June 2024, Judge Jackson dismissed the SEC case against Binance, claiming that secondary sales of binance coin (BNB) qualify as securities under the Howey test. Her court order bolstered Judge Torres’s Programmatic Sales of XRP ruling, surmising,

“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”

The SEC’s decision to appeal may hinge on a pending court ruling from the SEC vs. Coinbase (COIN) case.

SEC vs. Coinbase: Motion for Interlocutory Appeal

In April 2024, Coinbase filed a Motion for Interlocutory Appeal, requesting permission to appeal the Motion to Dismiss (MTD) ruling.

As background, Coinbase filed a Motion to Dismiss in August 2023, arguing that the SEC lacked the statutory authority to regulate US crypto exchanges. In March 2024, Judge Katherine Failla denied, in large part, the Coinbase Motion to Dismiss, surmising,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

The SEC could abandon its plans to appeal against the Programmatic Sales of XRP ruling if Judge Failla grants Coinbase’s Motion for Interlocutory Appeal.

Moreover, XRP could break above $1.00 if Ripple avoids an injunction and the SEC drops its plans to appeal.

Investors should remain vigilant as hopes for a settlement linger. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP remained comfortably above the 50-day and 200-day EMAs, affirming the bullish price signals. Additionally, the 50-day EMA converged on the 200-day EMA. A bullish cross through the 200-day EMA could signal an XRP breakout.

An XRP return to the July 17 high of $0.6378 could signal a move to 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 updates and SEC activity require consideration.

Conversely, an XRP break below the $0.5739 supported level could signal a drop toward the 200-day and 50-day EMAs.

With a 14-day RSI reading of 62.84, XRP may climb to the $0.65 handle before entering overbought territory.