XRP tumbled by 13.87% on Thursday to end the day at $0.5059, with the bearish session seeing XRP dip to sub-$0.44 for the first time since May.
The SEC’s potential interlocutory appeal adds a new twist to the case extending since December 2020.
John E Deaton said the Torres ruling may let her fully explain her reasoning and solidify her original decision.
On Thursday, XRP tumbled by 13.87%. Following a 3.49% loss on Wednesday, XRP ended the day at $0.5069. Significantly, XRP revisited sub-$0.44 for the first time since May.
Court Approves SEC Motion for Leave to File for an Interlocutory Appeal
On Thursday, news hit the news wires of Judge Torres granting the SEC motion for leave to file an interlocutory appeal. Significantly, Judge Torres wasted no time granting the SEC motion.
The SEC filed a motion for leave to file an interlocutory appeal on August 9, with Ripple filing its objection on Wednesday.
Defense attorney James Filan shared the news, saying,
“The Court has set a briefing schedule for the SEC’s request to file a Motion for Leave to File an Interlocutory Appeal. This does not mean an Interlocutory Appeal has been authorized. It just means the SEC is allowed to request it.”
According to the Court ruling, the SEC must file its motion by August 18, with Ripple having to file their opposition to any SEC motion by September 1. The SEC must then file its reply to any Ripple opposition by September 8.
It is another twist in a case extending since December 2020, and the latest news will continue to test investor sentiment.
The Court ruling will come as little surprise to Amicus curiae attorney John E Deaton who had previously stated,
“I expect Judge Torres to grant this motion. This will then allow her to even more fully explain her reasoning and to also further make it appeal-proof. It will also allow her an opportunity to address anything Rakoff said.”
As background, Judge Rakoff, the presiding Judge in the SEC v Terraform Labs case, stated that Judge Torres was erroneous in the SEC v Ripple Court ruling when declaring that XRP was not a security when sold on exchanges.
Ripple CEO Brad Garlinghouse responded to the Torres ruling, saying,
“Reminder – the request for appeal (even if granted) doesn’t change the fact that XRP is not a security. That’s not up for debate/trial. But the SEC continues to claim that Chris and I acted recklessly in believing that XRP is not a security. That’s utter nonsense.”
“The Judge’s July 13 ruling said that the SEC would be put to their proofs at trial regarding their claim against Chris and me. We look forward to proving the SEC wrong as a matter of fact and law (again).”
It is worth noting that the Torres decision allows the SEC the opportunity to file to request an appeal, it doesn’t mean that SEC can file an appeal. As John E Deaton highlighted, Judge Torres may take the opportunity to set the ruling in stone.
The Friday Session
An SEC motion to file an interlocutory appeal will draw interest. According to the Judge Torres ruling, the SEC must file the motion today. We expect increased sensitivity over the remainder of August, as SEC appeal-related chatter will likely grip XRP and the broader market.
However, SEC activity and US lawmaker chatter will also influence, while ETF, Binance, and Coinbase-related news need consideration.
XRP Price Action
This morning, XRP was up 1.09% to $0.5124. A bullish start to the day saw XRP rise from an early morning low of $0.5052 to a high of $0.5157.
The Daily Chart showed XRP/USD sitting above the $0.4920 – $0.4780 support band. After the Thursday sell-off, XRP sat below 50-day and 200-day EMAs, sending bearish near and longer-term price signals.
Looking at the 14-Daily RSI, the 26.01 shows XRP in oversold territory. However, RSI aligns with the EMAs supporting a fall through the $0.4920 – $0.4780 support band to target $0.45. However, an XRP move through the 200-day EMA would give the bulls a run at $0.55 and the $0.5750 – $0.5900 resistance band.
XRPUSD 180823 Daily Chart
Looking at the 4-Hourly Chart, XRP sits above the $0.4920 – $0.4780 support band, with the bears eyeing a return to $0.45.
XRP sits below the 50-day and 200-day EMAs, affirming the bearish near and longer-term price signals.
The 15.32 14-4H RSI shows XRP in oversold territory, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the EMAs, signaling a fall through the $0.4920 – $0.4780 support band. A fall through the support band would bring $0.45 into play.
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.