XRP gains 3.25% reversing Monday’s 0.04% slip, ending Tuesday at $0.5401, the highest since August 16.
Ripple Chief Legal Officer comments on the SEC’s losses in court, highlighting their ‘arbitrary’ decisions.
SEC v Coinbase and SEC v Ripple rulings will have a lasting impact on the US digital asset space.
The Tuesday Overview
On Tuesday, XRP gained 3.25%. Reversing a 0.04% slip from Monday, XRP ended the day at $0.5401.
Grayscale Victory Against the SEC Delivered a Broad-Based Rally
On Tuesday, news hit the wires of Grayscale winning its case against the SEC on appeal. Grayscale appealed the SEC decision to decline the request to convert the Grayscale Bitcoin Trust into a BTC-Spot ETF. Significantly, Grayscale filed the appeal in 2022.
While the Grayscale victory does not affect XRP directly, another SEC loss and the chance of an influx of sticky institutional money entering the crypto space are positives.
Ripple Chief Legal Officer Stuart Alderoty had this to say about the Grayscale win,
“The SEC is getting battered in the Court. In our case, it’s been proven wrong, being called hypocritical, lacking faithful allegiances to the law, fined for discovery abuses, and now another distinguished Court saying it’s ‘arbitrary and capricious.”
However, there were no SEC v Ripple case-related updates to deliver a sustained move toward $0.60.
XRP Remains in Limbo Ahead of Court Ruling on US Motion for Interlocutory Appeal
Ripple must submit its opposition to the SEC motion for interlocutory appeal by Friday. The XRP community, including CryptoLaw founder and Amicus Curiae attorney John E. Deaton, is confident Judge Torres will decline the SEC motion. However, Ripple must submit a compelling opposition to end the chances of an SEC win on appeal.
The SEC must submit any response to a Ripple opposition filing by September 8.
Deaton believes Judge Torres will take the opportunity to make her ruling appeal-proof by expanding the rationale behind her decision and addressing the Judge Rakoff references from the SEC v Terra Labs trial.
The Wednesday Session
Updates from the SEC v Ripple case will remain the key driver. A Ripple filing of its opposition to the SEC motion for interlocutory appeal will influence investor sentiment.
Following the Grayscale v SEC outcome, updates from the ongoing SEC cases against Binance and Coinbase (COIN) will also need consideration. The SEC and Coinbase await a Court ruling on a motion to dismiss the SEC case against Coinbase.
While the outcome of the SEC v Binance case will influence investor sentiment, the SEC v Coinbase and SEC v Ripple rulings will have a long lasting impact on the US digital asset space and the broader crypto market.
With the Court establishing XRP a non-security, a Coinbase victory would open the floodgates for exchanges to offer cryptos and draw a new investor base.
Before the Grayscale ruling, John E. Deaton shared his views on the ongoing SEC cases against the digital asset space. Deaton believed that Grayscale and Coinbase victories would create the landscape for the US digital asset space.
XRP Price Action
XRPUSD 300823 Weekly Chart
XRP tested resistance at $0.55 but fell short of the $0.5750 – $0.5900 resistance band and the 50-day EMA. Court rulings delivered a breakout session. However, falling short of the 50-day EMA will leave XRP in a bearish trend.
XRP would need Ripple to impress with its opposition filing to the SEC motion for interlocutory appeal to target the $0.5750 – $0.5900 resistance band and the 50-day EMA.
However, uncertainty will leave the $0.4920 – $0.4780 support band in play. A fall through the 200-day EMA would give the bears a run at sub-$0.50 and the support band.
Considering the 14-Daily RSI at 39.25, XRP can fall through the $0.4920 – $0.4780 support band before entering oversold territory.
XRPUSD 300823 Daily Chart
On Tuesday, XRP broke through the 50-day EMA, signaling a shift in sentiment. Despite the positive session, XRP fell short of the $0.5750 – $0.5900 resistance band and the 200-day EMA.
A hold above the 50-day EMA would support a breakout from the Tuesday high of $0.5499. However, a fall through the 50-day EMA would give the bears a run at the $0.4920 – $0.4780 support band. A lack of Court activity would leave SEC v Ripple chatter to move the dial.
Considering the 14-4H RSI reading of 57.94, XRP has room to run before hitting overbought territory.
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.