XRP News: Zakinov v Ripple and SEC v Ripple Are XRP Headwinds

Key Insights:

• XRP fell by 1.42% on Saturday, ending the session at $0.5680.
• The January 11 court date and scrutiny of the US crypto space left XRP on the back foot.
• On Sunday, the focus remains on US lawmaker scrutiny, the courts, and crypto-spot ETF chatter.

The Saturday Overview

On Saturday, XRP fell by 1.42%. Following a 1.99% loss on Friday, XRP ended the day at $0.5680.

Zakinov and Investors Versus Ripple: January 11 Court Date

On Thursday, January 11, there is a Zoom hearing in the ongoing Zakinov v Ripple case. The plaintiffs in the case claim Ripple sold XRP as an unregistered security. Significantly, Zakinov and others have requested the court to recognize a class of XRP holders who purchased and now hold XRP or sold XRP at a loss.

Crypto Eri shared an update on the Zakinov v Ripple case and a link to the Webinar for the hearing. Members of the public and the media can view the Zoom hearing.

The outcome of the Zakinov v Ripple case could be material for the ongoing SEC v Ripple case. The SEC and Ripple are progressing through remedies-related discovery. Remedies-related discovery concludes on February 12. From there, the SEC and Ripple must file remedy-related briefs, presenting arguments regarding the penalty for XRP sales to institutional investors.

Upon conclusion of the case, investors expect the SEC to appeal the Programmatic Sales of XRP ruling. In July, Judge Analisa Torres ruled the Programmatic Sales of XRP do not satisfy the third prong of the Howey Test.

A Ripple loss in the Zakinov v Ripple case could give the SEC more grounds for an appeal against the Programmatic Sales ruling. Therefore, we expect XRP price sensitivity to case-related chatter in the lead-up to the January 11 hearing.

Last week, the SEC requested Judge Katherine Failla to consider the Terraform Labs ruling in the ongoing SEC v Coinbase (COIN) case. The request highlights the SEC’s eagerness to have the courts classify cryptos as securities. Court rulings in favor of the SEC would allow the SEC to continue regulating by enforcement.

XRP Price Action

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP break above the 200-day EMA and the $0.5835 resistance level would give the bulls a run at the 50-day EMA and the $0.6364 resistance level.

On Sunday, the focus remains on court-related chatter, US lawmaker scrutiny, and BTC-spot ETF-related updates.

However, a fall through the $0.56 handle would give the bears a run at the $0.5470 support level.

The 14-day RSI reading, 34.63, suggests an XRP drop below the $0.56 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, sending bearish price signals.

A move through the $0.5835 resistance level would bring the 50-day and 200-day EMAs into play. A break above the EMAs would give the bulls a run at the $0.6354 resistance level.

However, a drop below the $0.56 handle would support a fall to the $0.5470 support level.

The 4-hourly RSI, with a reading of 36.42, indicates an XRP break below the $0.56 handle before entering oversold territory.