XRP News Today: XRP Slides on SEC Meeting News and Settlement Speculations

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Published: Aug 2, 2024, 01:33 GMT+00:00

Key Points:

XRP tumbled 4.20% on Thursday, August 1, ending the session at $0.5970.
Investors reacted to news of the SEC canceling its August 1 Closed Meeting.
On Friday, August 2, SEC vs. Ripple case-related news and SEC activity require consideration.

XRP Slides Below $0.60

On Thursday, August 1, XRP tumbled 4.20%. Following a 0.72% loss on Wednesday, July 31, XRP ended the session at $0.5970. Significantly, XRP dropped below $0.57 for the first time since July 19. The broader crypto market advanced by 0.22% to a total market cap of $2.283 trillion.

SEC Meeting Schedules and Settlement Hopes

On Wednesday, July 31, the SEC canceled its August 1 Closed Meeting, sinking investor hopes of a settlement in the SEC vs. Ripple case.

Speculation about a settlement intensified following an interview with CEO Brad Garlinghouse. In July, the Ripple CEO said he could not comment on discussions with the SEC.

Since the mid-July interview, the SEC has held one closed meeting but canceled two. According to the SEC website, the next closed meeting will be on August 8, with the same agenda as the canceled August 1 meeting.

Why is a Settlement Significant?

Investors await a remedies-related court verdict from the SEC vs. Ripple case. In July 2023, Judge Torres ruled that Ripple violated US securities laws by selling unregistered XRP to institutional investors.

Additionally, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

A settlement would prevent the SEC from appealing the Programmatic Sales ruling.

If Ripple and the SEC agree to settle, the door could open for ETF issuers to file applications for XRP-spot ETFs. A US XRP-spot ETF market could boost XRP demand.

Settlements and XRP-Spot ETFs: XRP Price Impact

In H2 2023, XRP had two significant price peaks.

On July 13, 2023, XRP rallied from $0.4696 to a session high of $0.9327 in response to the Programmatic Sales ruling. The upside was short-lived, with XRP dropping below $0.50 on fears of an SEC appeal.

Reaction to July 2023 Rulings

In November 2023, XRP rallied from $0.6410 to $0.7503 on fake news of BlackRock (BLK) filing for an XRP-spot ETF. The return to $0.75 was also short-lived, with XRP falling below the $0.60 handle.

Reaction to Nov 2023 BlackRock FUD

Market reactions to the SEC vs. Ripple court rulings and the spot-ETF news suggest a settlement could push XRP to $1.00.

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

XRP Weekly Chart sends bullish price signals.

XRPUSD 020824 Weekly Chart

Daily Chart

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

A return to $0.60 could support a move toward the July 31 high of $0.6591 and the $0.6609 resistance level. A break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

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

Conversely, a break below the $0.5739 support level could bring the 50-day and 200-day EMAs into play.

With a 14-day RSI reading of 55.16, XRP could return to the July 31 high of $0.6591 before entering overbought territory.

Daily Chart affirms the bullish price signals.

XRPUSD 020824 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.