XRP News: Lawsuit Developments Promise New Dawn for Ripple
- XRP gained 1.81% on Sunday to end the week up 4.40% to $0.5242.
- News of the Supreme Court planning an end to the Chevron Deference Doctrine supported a positive end to the week for XRP.
- The focus will now return to the SEC motion for interlocutory appeal.
The Sunday Overview
On Sunday, XRP gained 1.81%. Reversing a 1.28% loss from Saturday, XRP ended the week up 4.40% to $0.5242.
Supreme Court to Target Agency Powers
On Sunday, Ripple Chief Legal Officer Stuart Alderoty shared a banner, saying,
“Unelected bureaucrats – get back in your lane.”
The banner stated,
“Supreme Court in New Term Looks at Curbing Power of Federal Agencies.”
The banner is the title of a Wall Street Journal article from Saturday, which highlighted the immediate intentions of the US Supreme Court.
Reportedly, the court intends to revisit the Chevron Deference Doctrine. The doctrine stems from a Chevron and Natural Resources Defense Council (NRDC) case from 1984. The NRDC defines the Chevron Deference as follows,
“Chevron deference is the freedom federal judges give agencies over how to interpret a statute when a dispute arises.”
Under the guidance of the Supreme Court, there is a two-part test:
- They review the wording and context of a statute to see if the intentions of Congress are clear. If clear, then the issue is resolved.
- If the statutory language is unclear, where two or more interpretations are possible, the reviewing court must defer to the agency’s choice on how to enforce the law.
The NRDC explains that ending the Chevron Deference Doctrine could lead to chaos. Judges would have the power to decide which interpretation of a statute they prefer. Considering 850 judges who sit in the lower courts and the partisan appointments, the NRDC concludes,
“That’s probably not the result that those calling for an end to Chevron deference have in mind. But if their wishes come true, it could well be the one that we get.”
For the crypto market, the prospect of chaos will likely force Capitol Hill to deliver much-needed crypto legislation. The good news for the US digital asset space would be an end to the regulation by enforcement reign of the SEC.
XRP Price Action
XRP sat above the 200-day EMA while remaining below the 50-day EMA, sending bearish near-term but bullish longer-term price signals.
A break above the 50-day EMA would signal a near-term bearish trend reversal and support a move to the trend line.
US lawmaker commentary, SEC activity, and updates from the ongoing SEC cases against Coinbase (COIN) and Ripple will influence investor sentiment.
However, a fall below the 200-day EMA would give the bears a run at the $0.5042 support level. A break below the $0.5042 support level would bring sub-$0.48 into view.
The 55.39 14-Daily RSI reading suggests a breakout from the 50-day EMA and a move to the trend line before entering overbought territory.
In the 4-hourly Chart, XRP sits above the 50-day and 200-day EMAs, sending bullish price signals.
Avoiding a drop below the 200-day EMA would support an XRP move to the trend line. However, a break below the 200-day EMA would signal a fall through the 50-day EMA to target the $0.5042 support level.
The 14-4 Hourly RSI 59.12 reading supports an XRP move to the trend line before entering overbought territory.