XRP News: November 9 Deadline – SEC and Ripple on the Brink of Settlement

Bob Mason
Published: Oct 23, 2023, 02:12 GMT+00:00

With November 9 approaching, SEC and Ripple engage in talks, seeking resolution and remedies for alleged Ripple violations.

XRP News

In this article:

Key Insights:

  • On Sunday, XRP rose by 0.27%, capping a week-long surge to close at $0.5227.
  • Market anticipates a potential SEC-Ripple resolution amid Hinman’s speech-related document exposure.
  • Stay tuned for SEC v Ripple developments as the November 9 deadline looms.

The Sunday Overview

On Sunday, XRP rose by 0.27%. Following a 1.22% gain on Saturday, XRP ended the week up 7.22% to $0.5227.

SEC v Ripple Debate Continues as November 9 Nears

The debate over the likely outcome of the SEC v Ripple case continues to garner investor interest.

Linda P. Jones, an author and investor, shared her views on the SEC v Ripple case and the likely outcome of a briefing schedule.

The investment expert responded to predictions of a settlement in the SEC v Ripple case, saying,

“I agree, however, I think Ripple has a royal flush, meaning they aren’t negotiating and can literally name their terms. Due to exposure to the Hinman emails, the SEC has zero bargaining power. Ripple can 100% name their terms in the settlement.”

Jones referenced an infamous William Hinman speech in 2018 and the associated Hinman speech-related documents. The documents include internal SEC communications that suggest Hinman met with Simpson Thacher despite the warnings of the SEC ethics team.

As background, William (Bill) Hinman was the former SEC Director of the Division of Corporation Finance. Hinman said that bitcoin (BTC) and ethereum (ETH) were not securities in 2018. While the speech may seem innocuous, Hinman’s former employer, Simpson Thacher, is part of a group that promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

The Hinman speech and speech-related documents have been a focal point in the SEC v Ripple. Since filing charges against Ripple, the SEC has made at least six attempts to shield the documents under client-attorney privilege. However, the court denied the SEC attempts and ordered the SEC to hand the documents to the defendants under discovery.

At the time, the court ruling raised market expectations of a settlement. The SEC was eager to shield the documents from the public.

SEC and Ripple are likely in negotiations to settle before November 9. When dropping the charges against Brad Garlinghouse and Chris Larsen, the SEC also detailed intentions to progress toward a briefing schedule.

A briefing schedule would enable both parties to explore remedies to the charges against Ripple, these being Section 5 violations concerning its Institutional Sales of XRP. The SEC requested a deadline of November 9 before court involvement in brief schedules.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 231023 Weekly Chart

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals. The 50-day EMA continued to converge on the 200-day EMA. A bullish cross of the 50-day EMA through the 200-day EMA would signal a near-term bearish trend reversal.

An XRP hold above the 50-day EMA would give the bulls a run at the $0.5470 resistance level.

SEC v Ripple chatter will continue to influence near-term XRP trends. However, US lawmaker and SEC scrutiny also need consideration alongside crypto-spot ETF-related news.

A fall through the EMAs would support a move to the $0.5042 support level. A break below the support level would bring the $0.4700 support level into view.

The 57.91 14-day RSI reading indicates a break above the $0.5470 resistance level before entering overbought territory.

XRP Daily Chart affirms bullish price signals.
XRPUSD 231023 Daily Chart

4-Hourly Chart

In the 4-hourly Chart, XRP hovers above the 50-day and 200-day EMAs, reaffirming bullish price signals. Significantly, the 50-day EMA converged on the 200-day EMA, signaling a possible bullish cross. A bullish cross would support an XRP move to the $0.5470 resistance level.

However, a fall through the EMAs and the $0.5042 support level would give the bears a run at sub-$0.48.

The 4-hourly RSI, with a reading of 61.54, indicates an XRP return to $0.54 before entering overbought territory.

XRP 4-Hourly Chart reaffirms bullish price signals.
XRPUSD 231023 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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