XRP News Today: Will the SEC’s Appeal Silence Extend XRP’s Downtrend?

XRP Under Selling Pressure as Near-Term Appeal Withdrawal Hopes Fade

On Saturday, February 2, XRP slid by 5.15%, adding to Friday’s 2.93% loss, closing at $2.8795. XRP underperformed the broader crypto market, which fell 3.23% to a total market cap of $3.34 trillion.

News of US President Trump imposing tariffs on China, Canada, and Mexico weighed on market sentiment. However, investor angst over the SEC’s appeal in the Ripple case pulled XRP below the crucial $3 level.

SEC vs. Ripple Case: Appeal in Focus

Saturday’s pullback reflected market uncertainty about the SEC’s appeal strategy. The agency filed its appeal-related opening brief on January 15, just days before Gary Gensler stepped down as Chair. Significantly, the SEC challenged the Programmatic Sales of XRP ruling.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. Judge Torres delivered a Final Judgment in August 2024, ordering Ripple to pay a $125 million penalty for illegally selling XRP to institutional investors. Judge Torres based the penalty on a tier-one civil violation of the US Securities Act, with no allegations of fraud or recklessness.

The absence of allegations of fraud is critical, particularly considering acting SEC Chair Mark Uyeda’s recent comments:

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

Acting Chair Uyeda’s stance and incoming SEC Chair Paul Atkins’ views on enforcement may influence the SEC’s approach to the appeal, leaving the possibility of a withdrawal open. Donald Trump’s presidential election win and pro-crypto agenda have paved the way to a more crypto-friendly SEC, signaling a likely shift in the agency’s crypto enforcement strategies.

Ripple must file its appeal-related reply brief by an April 16 deadline, giving the SEC leadership ample time to assess the case. However, continued silence from the SEC could increase XRP’s volatility in the coming months.

XRP Price Trends: A Tipping Point

XRP’s near-term trends depend on the SEC’s appeal strategy and the potential approval of an XRP-spot ETF. A withdrawal could fast-track XRP-spot ETF approvals, potentially driving XRP above its all-time high of $3.5505 to target $4. Conversely, if the SEC continues its appeal and delays or denies spot ETF applications, XRP could drop below $2.

XRP Price Action

Daily Chart

Despite Saturday’s drop below $3, XRP sits well above the 50-day and 200-day Exponential Moving Averages (EMA), sending bullish price signals.

A return to $3 could enable the bulls to target the January 24 high of $3.2043. A breakout from $3.2043 may signal a move toward the January 16 high of $3.3999.

Conversely, an XRP drop below Saturday’s $2.8299 low could bring the 50-day EMA into play. A fall through the 50-day EMA may signal a drop toward $2.5.

With a 14-day Relative Strength Index (RSI) reading of 52.33, XRP could return to the January 16 high of $3.3999 before entering overbought territory (RSI above 70).

Market Outlook: Regulatory Uncertainty Looms

XRP’s outlook remains tied to the SEC’s next steps and broader regulatory shifts. The agency’s decision on the Ripple appeal, evolving crypto regulations, and macroeconomic factors will be key in shaping investor sentiment.

View our latest analysis here for deeper insights into the SEC’s appeal strategy and XRP’s market implications.