XRP News Today: Settlement and Verdict Speculation Intensifies

XRP Extends Losing Streak to Four Sessions

On Saturday, August 3, XRP declined by 0.87%. Following a 6.13% slide on Friday, August 2, XRP ended the session at $0.5555. Significantly, XRP extended its losing streak to four sessions as the broader crypto market slid by 1.94% to a total market cap of $2.107 trillion.

SEC vs. Ripple: Will Judge Torres Deliver a Verdict in August?

The SEC vs. Ripple case remains a hot topic across the crypto market as investors await a court verdict. In July 2023, Judge Analisa Torres ruled that Ripple violated US securities laws by selling unregistered XRP to institutional investors.

Judge Torres will decide on the penalty that could range from $10 million, as proposed by Ripple, to $2 billion and an injunction, as per the SEC’s opening brief. An injunction prohibiting Ripple from selling XRP to institutional investors would adversely impact Ripple’s US expansion plans.

The penalty could hinge on Ripple’s post-complaint activity. Ripple may face a $2 billion penalty and an injunction if Judge Torres considers on-demand liquidity (ODL) transactions violated US securities laws.

However, uncertainty lingers about the timing of a court verdict. Former Ripple Director Sean McBride commented on the Ripple case, stating,

“There is a 50/50 chance Judge Torres will make her decision this month in the SEC vs. Ripple case.”

Adding,

“Well, she has to make a decision by the end of September, hence the 50/50.”

Court Ruling and XRP Impact

An adverse court verdict could incentivize the SEC to appeal the Programmatic Sales of XRP ruling. In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. The ruling fueled an XRP rally to a 2023 high of $0.9327. However, XRP dropped below $0.45 in August amid fear of the SEC appealing against the Programmatic Sales ruling.

A substantial penalty, an injunction, and an appeal could push XRP below the $0.40 handle.

Settlement Speculation Intensifies

While investors await the court verdict, speculation about a potential settlement affects XRP price trends.

On July 31, 2024, the SEC canceled its August 1 closed meeting, dashing hopes of a settlement in the SEC vs. Ripple case. However, the SEC scheduled a closed meeting for August 8, which could rekindle investor hopes of a settlement.

A settlement could be pivotal for Ripple, XRP, and the broader crypto market. If the SEC and Ripple settle, the SEC could not appeal against court rulings from the Ripple case, setting the Programmatic Sales ruling as a precedent. XRP would likely retake the $1.00 handle if the SEC and Ripple agreed to a settlement.

Investors should remain alert amidst increasing speculation about a settlement. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

A breakout from the $0.5739 resistance level could give the bulls a run at the $0.60 handle. Furthermore, a break above $0.60 could signal a move toward the July 31 high of $0.6591 and the $0.6609 resistance level.

SEC vs. Ripple case-related news would require consideration.

Conversely, a break below the 50-day and 200-day EMAs could bring the $0.50 handle into play.

With a 14-day RSI reading of 47.02, XRP could fall to the $0.50 handle before entering oversold territory.