XRP News Today: XRP Slides Below $0.60 Amid Appeal Uncertainty and SEC Silence

XRP Dips Below $0.60 Amid Appeal Uncertainty

On Sunday, August 25, XRP declined by 2.02%, reversing a 0.25% gain from the previous day, closing at $0.6006. XRP underperformed compared to the broader crypto market, which fell by 0.41% to a total market cap of $2.207 trillion.

SEC Closed Meetings and Appeal Plans

On August 7, 2024, Judge Analisa Torres delivered the final judgment in the SEC vs. Ripple case. However, the jury is still out on whether the SEC will file appeals against rulings. Almost three weeks have passed since the final judgment. While the SEC has held several closed meetings, the agency has not shared its plans with the public, leaving XRP in limbo.

On Thursday, August 29, the SEC will hold its fourth closed meeting since the final judgment. The agency could discuss the Ripple case and the merits of appealing.

Considering the effect of the SEC’s silence on XRP price trends, the SEC may delay any announcement until the last moment. Ripple and the SEC have a 60-day window to appeal from the final judgment date.

Ripple’s US Expansion Plans and the Injunction Ruling

In the final judgment, Judge Torres granted the SEC’s request for injunction relief, requiring Ripple to comply with US securities laws in the future. However, the court order fell short of the SEC’s request for an injunction prohibiting XRP sales to institutional investors.

Pro-crypto lawyer Fred Rispoli commented on the final judgment, stating,

“So it is something that is as basic as it can be about what they’re prohibited from in this injunction. […]. It doesn’t explicitly destroy their business model, which is what the SEC was going for in this.”

Rispoli also commented on the chances of an appeal:

“It is as close to a 50-50 as you can get.”

On-Demand Liquidity and XRP

An appeal against the injunction ruling could affect Ripple’s On-Demand Liquidity (ODL) plans in the US and impact XRP demand.

On Friday, August 23, Digital Wealth Partners Wealth Advisor Mickle commented,

“ODL will increase the price of XRP *FACT*.”

Mickle elaborated,

“Automated Market Makers (AMMs) represent the future of ODL and will contribute to further price impacts by locking up XRP. This, combined with Ripple’s leasing model, creates additional mechanisms that restrict the availability of XRP for trading. By tying up XRP in these systems, both AMMs and the leasing model contribute to the scarcity of available XRP, which in turn has a positive effect on its price.”

Considering Mickle’s perspective, if the SEC successfully blocks institutional XRP sales, it could hinder ODL availability in the US. The SEC could adversely impact Ripple’s expansion plans if Judge Torres deems XRP sales via ODL agreements as violations of US securities laws.

XRP Price Trends

Price trends remain uncertain amidst the speculation about the SEC’s plans to appeal. If the SEC decides not to appeal, XRP could move toward $1.00. Conversely, an appeal could drive the price below $0.40.

Investors should remain alert as appeal-related chatter will likely influence price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

A breakout from $0.6000 could signal a move toward the Saturday high of $0.6312. A return to $0.6312 may give the bulls a run at the August 7 high of $0.6434 and the $0.6609 resistance level.

SEC vs. crypto case-related updates require consideration.

Conversely, a fall through $0.60 could indicate a drop toward the $0.5739 support level. A break below the $0.5739 support level may give the bears a run at the 50-day and 200-day EMAs.

With a 14-day RSI reading of 55.46, XRP could break above the $0.6609 resistance level before entering overbought territory.