XRP News Today: Settlement Speculation and SEC Appeal Strategy Impact XRP Price

XRP Mirrors the Broader Crypto Market

On Monday, October 7, XRP declined by 0.94%, reversing a 0.74% gain from the previous session to close at $0.5284. XRP’s loss mirrored the broader crypto market, which declined by 0.91% to a total market cap of $2.118 trillion.

Settlement Speculation Cushions XRP

Speculation about a possible settlement in the SEC v Ripple case likely cushioned XRP’s downside. Discussions of a possible settlement drew interest.

XRP community member JackTheRippler posted on X:

“The Ripple and SEC legal proceedings may potentially conclude within the designated 14-day appeal timeframe.”

SEC Appeal Focuses on Programmatic Sales

The SEC filed its Notice of Appeal on October 2, which the United States Court of Appeals for the Second Circuit docketed on October 4. The docket listed the July 2023 summary judgment and the August 2024 final judgment.

It is plausible that the SEC is targeting the summary judgment to negotiate a higher penalty.

Pro-Crypto Lawyer Predicts SEC Appeal Strategy

In August 2024, pro-crypto lawyer ‘James ‘MetaLawMan’ Murphy cited two likely rulings the SEC might challenge:

The first ruling related to the court denying the SEC’s request for a $1.1 billion disgorgement. Murphy viewed this as a blow to the SEC. In its remedies-related opening brief, the SEC argued that the court should impose a deterring penalty. The SEC highlighted Ripple’s refusal to accept responsibility and public statements since the July 2023 summary judgment.

However, Murphy also believed the agency would challenge the Programmatic Sales of XRP ruling. In August 2023, the SEC filed a Motion for Interlocutory Appeal, asking the court’s permission to challenge the Programmatic Sales ruling. In October 2023, Judge Torres rejected the Motion. The Programmatic Sales ruling could be a bigger blow to the SEC .

Former SEC Lawyers Weigh In

Former SEC lawyers flagged the Programmatic Sales of XRP ruling as crucial. One lawyer stated,

“The SEC will ‘probably’ appeal Judge Torres’s July 2023 ruling concerning the XRP programmatic sales in the Ripple case partly because: ‘everyone over there [at the SEC] truly believes that the decision is wrong, that it’s not good law, and should be appealed.”

Another lawyer, Marc Fagel, reacted to the Notice of Appeal, stating,

“I believe the purpose of the appeal is primarily to reverse the lower court’s ruling that programmatic & non-cash sales were not securities sales. I assume they’ll challenge the remedies (and the individuals’ liability) as well, but they wouldn’t be doing this just for penalties.”

It remains to be seen whether Ripple would agree to a punitive penalty to avoid an appeal against the Programmatic Sales ruling.

The former SEC lawyers’ comments suggest that the SEC is more focused on the Programmatic Sales ruling. By default, the penalty could be higher if the agency wins on appeal.

Marc Fagel commented on the implications of an SEC win, saying,

“In the event the SEC wins (a long shot, BTW), yes, penalties would be higher (though none of the money goes to the SEC). But they’re more interested in the legal precedent – i.e. establishing law that the circumstances of Ripple’s sales require registration.”

XRP Price Trends: What’s Next?

XRP will likely remain under pressure until the SEC and Ripple’s court filings. Speculation about the SEC’s appeal strategy and the court filings will influence XRP demand. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40. Conversely, if the SEC withdraws its appeal, XRP could rally toward $1.00, mirroring price action following the Programmatic Sales ruling.

Outlook

Investors should closely monitor appeal-related news, which may 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 below the 50-day and 200-day EMAs, affirming bearish price signals.

A return to $0.5350 could support a move toward the $0.55 level and the 200-day EMA. Furthermore, a breakout from the 200-day EMA may give the bulls a run at the 50-day EMA and the $0.5739 resistance level.

Geopolitics, Ripple-related news, SEC activity, and SEC vs. crypto case-related updates require consideration.

Conversely, a break below the $0.50 level may indicate a drop toward the trend lines.

With a 14-day RSI reading of 39.55, XRP may fall to $0.50 before entering oversold territory.