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XRP News: Dovish Fed and SEC Delay Counter Ripple’s Legal Battle

By:
Bob Mason

The uncertainty of SEC's appeal against the Programmatic Sales ruling casts a shadow on XRP's future.

XRP News

In this article:

Key Insights:

  • XRP gained 1.13% on Tuesday, ending the session at $0.6110.
  • Dovish Fed comments and the SEC decision to delay the Franklin and Hashdex BTC-spot ETF application reviews offered support.
  • The ever-present threat of the SEC appealing the Programmatic Sales of XRP ruling remains a headwind.

The Tuesday Overview

On Tuesday, XRP gained 1.13%. After a 1.88% loss on Monday, XRP ended the session at $0.6110.

SEC Fails to Spook Investors with BTC-Spot ETF Delay

There were no SEC v Ripple case-related updates for investors to consider on Tuesday. The lack of case-related activity left XRP in the hands of the broader crypto market. Investors responded favorably to dovish Fed comments, which fueled bets on an H1-2024 Fed rate cut.

Notably, the bets on an H1-2024 Fed rate cut coincided with news of the SEC delaying the decisions on Franklin and Hashdex BTC-spot ETF applications. The delay supported expectations of the SEC planning on approving a batch of applications.

However, XRP failed to reverse losses from Monday. Increased regulatory scrutiny and a high probability of the SEC appealing the Programmatic Sales of XRP ruling tested buyer appetite.

SEC Appeal on Programmatic Sales Ruling More Likely Than Not

Recently, the SEC has attempted to expedite the SEC v Ripple case. After the court rejected the SEC’s interlocutory appeal, recent filings have brought forward the likely end date of the case.

According to the court order dated November 13, 2023, the SEC and Ripple must file briefs related to remedies by March 13, 2024, and April 12, 2024, respectively. The SEC can file one final reply brief by April 19, 2024.

After the reply brief filing, Judge Analisa Torres will deliberate and decide on a final penalty amount for the sale of XRP to US institutional investors. The timelines are relevant, assuming the SEC and Ripple don’t settle before April.

However, the outlook remains uncertain despite the likely conclusion to the case. After the court ruling on penalties, the SEC could file an appeal against the Programmatic Sales ruling. The appeal process could extend into 2025, leaving investors to face another period of uncertainty.

The SEC decision to file charges against Kraken for the second time in ten months highlighted the SEC’s intentions vis-à-vis the US digital asset space.

Increasing US regulatory activity and a lack of progress on Capitol Hill to deliver a regulatory framework remain headwinds.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 291123 Weekly Chart

Daily Chart

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

An XRP move to $0.62 would give the bulls a run at the $0.6354 resistance level and the $0.65 handle.

SEC activity and Binance, Coinbase (COIN), Kraken, and Ripple case-related updates remain focal points.

However, a break below the trend line and 50-day EMA would support a drop to the $0.5835 support level.

The 14-day RSI reading of 49.20 suggests an XRP break below the 50-day EMA before entering oversold territory.

XRP Daily Chart EMAs send bullish price signals.
XRPUSD 291123 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day EMA while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

An XRP move through the 50-day EMA would bring the $0.6354 resistance level into play.

However, an XRP break below the 200-day EMA would support a drop to the trend line.

The 4-hourly RSI, with a reading of 50.33, suggests an XRP move to the $0.6354 resistance level before entering overbought territory.

XRP 4-Hourly Chart sends bearish near-term price signals.
XRPUSD 291123 4-Hourly 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.

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