XRP News: Judge Torres Grants Ripple Motion to File Sur-Reply Letter

Key Insights:

• XRP declined by 0.93% on Thursday, ending the session at $0.5136.
• SEC v Ripple case-related updates continued to impact buyer demand.
• On Friday, SEC v Ripple and Coinbase case-related news and US lawmaker chatter need consideration.

The Thursday Overview

On Thursday, XRP declined by 0.93%. Reversing a 0.06% loss from Wednesday, XRP ended the session at $0.5136. Significantly, XRP closed in negative territory for the seventh time in nine sessions.

SEC v Ripple Case: Judge Torres Grants Ripple Motion to File Sur-Reply

SEC v Ripple case-related news garnered investor interest on Thursday. Defense attorney James Filan shared the latest from the ongoing SEC v Ripple case, saying,

“Motion to file Sur-reply has been granted.”

On Wednesday, Ripple filed a Motion to file a Sur-Reply relating to the SEC’s Motion to Compel.

In the Motion to file a Sur-Reply, Ripple asked permission,

“To correct a significant factual mischaracterization made by the SEC for the first time in its reply.”

Ripple provided the proposed sur-reply letter within the filing, which stated,

“The SEC claims that Ripple does not… argue that it would be burdened in producing post-complaint contracts. […] That is false: Ripple specifically objected to the SEC’s request as overly burdensome.”

The sur-reply letter went on to say,

“The SEC then doubles down on its misstatement, asserting Ripple recently cataloged and presumably produced, in the ongoing class action suit, all of Ripple’s XRP sales contracts from 2020 to June 2023, including determining the identity of counterparties to those contracts. […] That is also false.”

SEC Motion to Compel Focuses on Post-Complaint Activity

Judge Torres must now consider the SEC’s Motion to Compel, Ripple’s opposition filing, and the sur-reply letter.

On January 11, the SEC filed the Motion to Compel, asking the court to order Ripple to provide,

• Post-complaint contracts governing XRP institutional sales.
• Financial statements for 2022-23.

Ripple opposed the Motion to Compel on January 19.

As background, Ripple and the SEC are making their way through remedies-related discovery. On July 13, 2023, Judge Torres ruled that Ripple broke Section 5 of the 1933 Securities Act for failing to register XRP as a security for institutional sales.

The Motion to Compel suggests the SEC wants to ascertain whether Ripple continued to breach Section 5 of the 1933 Securities Act. Judge Torres could impose a punitive penalty. However, the SEC must demonstrate that Ripple continued to violate securities laws despite the complaint.

The documents would also reveal proceeds from post-complaint XRP sales to US institutional investors, if any. Proceeds from XRP sales to US institutional investors are a consideration for Judge Torres.

XRP Price Action

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending bearish price signals. Significantly, the 50-day EMA continued narrowing on the 200-day EMA, another bearish sign.

An XRP return to the $0.52 handle would support a move to the $0.5470 resistance level. A break above the $0.5470 resistance level would give the bulls a run at the 200-day EMA.

Court rulings in the ongoing SEC v Ripple case, SEC v Coinbase-case related news, and US lawmaker chatter need consideration.

However, a break below the $0.5042 support level would bring the $0.4700 support level into play.

The 14-day RSI reading, 29.82, shows XRP in oversold territory. Buying pressure could intensify at the $0.5042 support level.

4-Hourly Chart

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

An XRP breakout from the $0.52 handle would bring the 50-day EMA into play. A move through the 50-day EMA would give the bulls a run at the $0.5470 resistance level.

However, a break below the $0.5042 support level would support a drop below the $0.50 handle.

The 4-hourly RSI, with a reading of 37.32, suggests an XRP fall through the $0.50 handle before entering oversold territory.