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XRP News: Ripple and XRP: Between Lawsuit Limelight and Liquidity Hub Exclusion

By:
Bob Mason
Published: Sep 17, 2023, 00:26 GMT+00:00

XRP's absence from Ripple's Liquidity Hub highlights the ongoing SEC lawsuit complexities and potential appeal outcomes.

XRP News

In this article:

Key Insights:

  • XRP ended a four-day winning streak, falling 0.06% on Saturday.
  • Anticipation rises as the XRP community eagerly awaits a pivotal ruling from Judge Torres.
  • Judge Failla’s ruling on the SEC v Coinbase case could reshape the US digital asset landscape.

The Saturday Overview

On Saturday, XRP slipped by 0.06%. Following a 2.29% gain on Friday, XRP ended the day at $0.5003. XRP ended a four-session winning streak.

Ripple and XRP Community Patiently Await Judge Torres’s Ruling

There were no SEC v Ripple case-related updates for investors to consider on Saturday. Unusually, there was also no discussion regarding the SEC’s motion for interlocutory appeal. The lack of commentary and Court activity left XRP relatively flat for the session.

However, investors should be mindful of the pending ruling on the motion for interlocutory appeal. Judge Torres could rule at any time. A court ruling for the SEC will likely drag the SEC v Ripple case into 2025.

If Judge Torres denied the motion, it would be another loss for the SEC and the anti-crypto side of the aisle.

While there were no case-related updates to draw investor interest, Ripple remained center stage. Despite the court ruling on Programmatic Sales and XRP not being a security, Ripple continues to exclude XRP from the Ripple Liquidity Hub.

XRP Remains Out of the Ripple Liquidity Hub

This week, Ripple included Tether (USDT) and USD Coin (USDC) in Liquidity Hub (LH). However, XRP remained absent despite the recent court ruling.

Responding to XRP Community reactions to the absence of XRP, lawyer and digital asset enthusiast Bill Morgan had this to say,

“XRP has clarity as not itself a security but Ripple’s use or sales does not have final clarity given the SEC’s intent to appeal. If Ripple uses XRP in LH, can it or its customers be certain this will not attract SEC enforcement until the lawsuit & any appeal is finally resolved?”

Morgan added,

“Ripple will be more responsive to the needs and demands of its shareholders and customers than XRP holders.”

Morgan concluded,

“That is hardly surprising. As the XRP community was happy to accept when Ripple argued that there was no common enterprise between XRP holders and Ripple, there are no rights against Ripple from the purchase of an XRP token and Ripple has no legal obligations to XRP holders.”

Morgan makes a fair point and provides a live application of the Howey Test, which Judge Torres applied in the ruling on Programmatic Sales.

SEC v Coinbase: the Case the SEC Can’t Afford to Lose

There were also no SEC v Coinbase (COIN) case-related updates for investors to consider.

On balance, the outcome of the SEC v Coinbase case will likely have greater significance to the US digital asset space.

The US crypto market, US lawmakers, Coinbase, and the SEC await Judge Failla’s ruling on the Coinbase motion to dismiss (MTD).

Coinbase filed a motion to dismiss in August, arguing that the SEC overstepped its jurisdictional boundaries with the charges. Notably, Coinbase has the backing of Republican Senator Cynthia Lummis, among others.

Senator Cynthia Lummis, crypto lobbyists, and professors put their weight behind the Coinbase MTD, filing Amicus Briefs to support the Coinbase MTD.

The SEC alleges Coinbase operates as an unregistered securities broker, clearing agent, and exchange.

If Judge Failla grants the Coinbase MTD, the SEC will likely appeal. However, the SEC v Ripple case and the SEC v Coinbase case could set a precedent for the digital asset space.

In simple terms, the Howey test’s application regarding investment contracts could be consistent with both the Coinbase filing and Judge Torres’s ruling. Coinbase highlighted the absence of investment contracts that offer “future value reflecting the income, profits, or assets of a business.”

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 170923 Weekly Chart

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, reaffirming bearish price signals. Despite the four-day winning streak, the pending court rulings leave XRP restrained at the $0.50 handle. Positive commentary and updates from the two cases would support an XRP break above the $0.5042 resistance level to target the 200-day EMA and the trend line.

Selling pressure will intensify at $0.5210, with the 200-day EMA confluent with the trend line.

The 41.99 14-Daily RSI reading signals an XRP fall to sub-$0.48 before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 170923 Daily Chart

4-Hourly Chart

XRP hovers above the 50-day EMA while remaining below the 200-day EMA. The EMAs send bullish near-term but bearish longer-term price signals.

A break above the $0.5042 resistance level would give the bulls a run at the 200-day EMA and trend line. However, XRP will face increased selling pressure at the 200-day EMA, which is confluent with the trend line.

A break below the 50-day EMA would bring sub-$0.48 into play.

The 14-4 Hourly RSI 59.03 reading supports an XRP break above the $0.5042 resistance level before hitting overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 170923 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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