- XRP faced a 3.62% decline, closing at $0.5267, as uncertainty over the SEC’s potential appeal on Programmatic Sales ruling weighed on the market.
- Legal battles, including SEC v Ripple and SEC v Coinbase, add complexity, leaving investors on edge despite positive indicators in XRP’s chart.
XRP faced a 3.62% slide on Monday, closing the session at $0.5267, as the crypto market grapples with uncertainty stemming from SEC courtroom developments. The latest news, particularly around the SEC v Ripple case and SEC v Coinbase, has investors on edge.
XRP, the digital currency associated with Ripple, experienced a dip of 3.62% on Monday, settling at $0.5267. This downturn follows a 1.23% loss the day prior, bringing into view the sub-$0.50 territory. The prevailing uncertainty revolves around the SEC’s intentions to appeal the recent Programmatic Sales ruling, adding a layer of complexity to XRP’s outlook.
SEC v Ripple: Appeal Uncertainty Looms
Monday saw no new updates in the SEC v Ripple case, leaving investors eagerly awaiting the court’s decision on the SEC Motion to Compel. The regulatory body had requested Ripple to furnish financial statements for 2022-23 and post-complaint contracts governing XRP institutional sales. Ripple opposed this motion, creating a pivotal moment awaiting judgment by Judge Analisa Torres.
The SEC is seemingly banking on further breaches of Section 5 of the 1933 Securities Act to push for a more punitive disgorgement. Judge Torres had previously ruled that Ripple breached Section 5 when selling XRP to sophisticated investors and entities in July.
The Curveball: SEC v Coinbase
Adding to the intrigue, the SEC and Coinbase engaged in a hearing on January 17 regarding the Coinbase motion to dismiss. Legal experts suggest that Coinbase has a favorable chance of winning, with a 70% probability. This sentiment grew stronger after defining investment contracts, and there’s speculation that the case might eventually reach the US Supreme Court, potentially limiting the application of Howey.
Brad Garlinghouse, Ripple’s CEO, expressed skepticism about the Supreme Court’s stance, stating, “The current Supreme Court, we’d love to see the Vegas odds on how that would go. They have not been friendly to regulators.”
Navigating XRP’s Future Amidst Legal Headwinds
Investors now find themselves at a crossroads, monitoring news wires for updates on SEC v crypto cases, particularly the outcomes of the SEC Motion to Compel and Coinbase’s motion to dismiss. An XRP breakthrough above the $0.5470 resistance level could pave the way for a bullish run, targeting the 200-day EMA. Conversely, a drop below the $0.52 handle could trigger a descent towards the $0.5042 support level.
The 14-day RSI reading at 32.51 signals potential oversold conditions, while on the 4-hourly chart, XRP sits below the 50-day and 200-day EMAs, indicating bearish tendencies. As the crypto market remains intertwined with regulatory developments, investors brace for the next moves, recognizing the potential impact on XRP’s trajectory.
+ There are no comments
Add yours