XRP News Today: SEC’s Legal Maneuvers Drive XRP Price Volatility

The Sunday Overview

On Sunday, XRP slid by 1.92%. Following a 0.05% decline on Saturday, XRP ended the session at $0.6087. XRP extended its losing streak to three sessions on Sunday.

XRP continued to trail the broader crypto market. The total crypto market cap gained 0.39% on Sunday, ending the session at $2,532 billion. Significantly, XRP ended the week down 3.03%, while the total crypto market cap rose by 9.82%.

SEC plans to appeal the Programmatic Sales of XRP ruling remained an XRP headwind. There were no SEC v Ripple case-related updates to influence investor sentiments.

SEC v Ripple:

It could be a pivotal week for XRP and the broader crypto market. A court ruling in the ongoing SEC v Coinbase (COIN) case could forestall SEC plans to appeal the Programmatic Sales of XRP ruling.

In June 2023, the SEC filed charges against Coinbase for allegedly operating 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.

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

If Judge Katherine Failla grants the Motion to Dismiss, amicus Curiae attorney and CryptoLaw US founder John E Deaton believes the SEC would settle the Ripple case. A settlement would close the door to the appeal courts.

Since Judge Failla heard oral arguments in January, the SEC has attempted to influence Judge Failla with two SEC v crypto court rulings.

SEC Filings and Coinbase Responses Create Uncertainty

In January, the SEC requested Judge Failla consider the Terraform Labs ruling. Judge Rakoff ruled TerraUSD and Luna are securities while criticizing the Programmatic Sales of XRP ruling.

The SEC also alerted Judge Failla of Judge Tana Lin (SEC v Wahi) ruling tokens acquired in an insider dealing case were investment contracts. Judge Lin ruled the tokens were investment contracts even on a secondary exchange.

Coinbase Chief Legal Officer Paul Grewal had this to say about the Lin ruling in the SEC v Wahi case,

“Default judgments aren’t contested. The whole point is that the defendant didn’t show up from his hideout in India or wherever to contest anything. So, the judge literally has the SEC on one side and no one on the other.”

Grewal added,

“The judge here confirmed in her order that she only considered the SEC’s filings and did not consider any amicus briefs or other papers showing the fallacy of the SEC’s arguments.”

Nonetheless, the ruling created uncertainty about the MTD and its influence on the SEC v Ripple case. Coinbase filed a response to the SEC v Wahi ruling, saying,

“The Wahi order was procured against an empty chair and its reasoning reflects as much. Coinbase respectfully submits that the default judgment against Mr. Ramani should be afforded no weight.”

Notably, the filings may delay a court ruling on the Coinbase Motion to Dismiss and leave XRP in limbo. The SEC may also have time to appeal against the Programmatic Sales of XRP ruling before Judge Failla rules on the Coinbase MTD.

XRP could face intensifying selling pressure if the SEC appeals the Programmatic Sales of XRP ruling.

XRP Price Action

Daily Chart

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

A return to the $0.62 handle would support a move to the $0.6354 resistance level.

SEC v crypto case-related news needs consideration.

However, a fall below the $0.60 handle could bring the $0.5835 support level into play.

The 14-day RSI reading, 53.73, indicates an XRP move to the March 5 high of $0.6692 before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day EMA while holding above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An XRP break above the 50-day EMA would bring the $0.6354 resistance level into play.

Conversely, a fall through the $0.60 handle would give the bears a run at the $0.5835 support level and the 200-day EMA. Buying pressure could intensify at the $0.5835 support level. The 200-day EMA is confluent with the support level.

The 4-hourly RSI, with a reading of 38.71, indicates a fall to the $0.5835 support level before entering oversold territory.