XRP News Today: SEC’s Ripple Appeal Plans Casts Shadow on XRP’s Future

The Tuesday Overview

On Tuesday (April 30), XRP declined by 2.87%. Reversing a 1.04% gain from Monday (April 29), XRP ended April down 20.51% to $0.5006.

SEC vs. Ripple: Court Ruling on Ripple Motion to Strike

On Tuesday (April 30), SEC vs. Ripple case-related updates resonated. The SEC filed its opposition brief to Ripple’s Motion to Strike expert testimony and accompanying exhibits (the “Fox Declaration”).

Ripple must file its reply brief to the SEC’s opposition brief by Thursday (May 2).

Judge Sarah Netburn must decide whether SEC enforcement division accountant Andrea Fox was an expert or summary witness. Furthermore, Judge Netburn must decide whether her testimony and accompanying exhibits summarize existing testimony or are new expert testimony.

If Judge Netburn grants the Motion to Strike, the court will ignore the post-complaint accounts-related content within the SEC’s opening brief. A ruling for Ripple could also impact the SEC’s case for a punitive disgorgement and injunction.

Beyond the briefs relating to the Motion to Strike, the SEC must file a reply brief on May 6. The reply brief is the final sequence in the remedy-related brief filings. The SEC filed its opening brief on March 22, with Ripple filing its opposition brief on April 22.

There is no trial for investors to consider, leaving XRP and Ripple in limbo until a court ruling on the penalty for Ripple breaching US securities laws.

However, the SEC will likely extend the case into 2025 by appealing 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.

The lingering threat of the SEC appealing against the Programmatic Sales ruling remains an XRP headwind.

As the SEC vs. Ripple case nears the deliberation stage, activity in the SEC vs. Coinbase (COIN) could intensify.

SEC vs. Coinbase: Crypto Lawyers and Senate Runner John E. Deaton

On Friday (April 26), Cryptolaw US founder and US Senate Candidate John E. Deaton filed an amicus curiae brief representing 4,701 Coinbase customers.

The amicus curiae brief supports the Coinbase Motion to seek an interlocutory appeal against the ruling on the Coinbase Motion to Dismiss (MTD). In March, Judge Katherine Failla denied the Motion to Dismiss the charges for operating as an unregistered securities exchange.

The preliminary statement referenced the SEC vs. Ripple case and the SEC argument to file interlocutory appeal to contest the Programmatic Sales of XRP ruling, stating,

“The crypto industry, including Coinbase customers, are in desperate need for legal clarity in the United States. Almost everyone, including the SEC in the Ripple case agrees. According to the SEC, substantial grounds for difference of opinion justify an interlocutory appeal.”

In October, Judge Analisa Torres rejected the SEC’s motion to file interlocutory appeal against the Programmatic Sales of XRP ruling.

The outcome of the SEC vs. Coinbase case could have significant implications for the US digital asset space. A Coinbase victory may end the SEC’s reign of regulation through enforcement. A win could also end SEC plans to appeal against the Programmatic Sales of XRP ruling.

XRP Price Action

Daily Chart

XRP sat comfortably below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP breakout from the bottom and top trend lines would support a move to the 50-day EMA. A break above the 50-day EMA would give the bulls a run at the 200-day EMA and $0.5739 resistance level.

SEC vs. crypto case-related news needs consideration.

Conversely, an XRP drop below the $0.4950 handle could signal a fall toward the $0.45 handle.

The 14-day RSI reading, 38.05, indicates an XRP break below the $0.48 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the 50-day EMA and the bottom trend line would bring the top trend line into play. Selling pressure could intensify at the bottom trend line. The 50-day EMA is confluent with the bottom trend line. A breakout from the top trend line could give the bulls a run at the $0.5361 resistance level.

Conversely, an XRP fall through the $0.4950 handle could give the bears a run at the $0.45 handle.

The 14-day RSI reading, 39.21, suggests an XRP break below the $0.48 handle before entering oversold territory.