XRP News: Ripple CTO’s Challenge to SEC Spurs Debate and Forecast

The Monday Overview

On Monday, XRP gained 3.23%. Reversing a 2.68% loss from Sunday, XRP ended the session at $0.6480. Significantly, XRP revisited the $0.66 handle for the first time since December 11, 2023.

BTC-Spot ETF Market Fuels BTC and Broad-Based Crypto Rally

BTC surged 8.02% on Monday. MicroStrategy (MSTR) plans to acquire more bitcoin fueled the BTC and broader crypto market rally.

On Monday, news of MicroStrategy planning to raise $600 million through a private offering drove buyer demand for BTC and the broader market. However, XRP trailed the broader crypto market. On Monday, the total crypto market cap increased by 5.90% ($135.984 billion) to $2,441 billion.

While XRP enjoyed a positive session, uncertainty surrounding the outcome of the SEC v Ripple case remained a headwind.

SEC v Ripple: Ripple CTO Schwartz Joined the Securities Debate

On Monday, Ripple Chief Technical Officer David Schwartz shared a CNN news article about Tesla (TSLA), saying,

“I’d love to hear the SEC explain why Tesla isn’t selling unregistered securities.”

The post highlighted the SEC’s continuing pursuit of crypto firms, asserting that all crypto (except BTC) are securities.

In the SEC v Ripple case, the SEC and Ripple are preparing remedy-related briefs. The SEC and Ripple will argue for and against a punitive penalty for breaching Section 5 of the US Securities Act.

In July 2023, Judge Analisa Torres ruled Ripple failed to register XRP as a security in sales to US institutional investors. However, Judge Torres also ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Since the July 2023 ruling on Programmatic Sales, the SEC filed complaints against Binance, Coinbase (COIN), and Kraken, amongst others.

Coinbase and Kraken have responded to the charges, filing Motions to Dismiss. The Coinbase Motion to Dismiss (MTD) remains the focal point for the crypto market. Having filed the Motion to Dismiss in August 2023, a ruling could come at any time.

Coinbase (COIN) argued the SEC lacked the statutory authority to regulate crypto exchanges. If Judge Katherine Failla grants the MTD, the SEC may have to end its regimen of regulation through enforcement.

A ruling in favor of Coinbase may also force the SEC to settle the ongoing cases against Binance, Kraken, and Ripple. A settlement with Ripple would end SEC plans to appeal against the Programmatic Sales of XRP ruling.

XRP Price Action

Daily Chart

XRP remained well above the 50-day and 200-day EMAs, sending bullish price signals.

An XRP breakout from the Monday high of $0.6672 would give the bulls a run at the $0.7047 resistance level.

SEC v Ripple and Coinbase case-related updates and BTC-spot ETF market flows need consideration.

However, a break below the $0.6354 support level would bring the $0.5835 support level into play.

The 14-day RSI reading, 72.79, shows XRP in overbought territory. Selling pressure could intensify at the Monday high of $0.6672.

4-Hourly Chart

On the 4-hourly, XRP sat well above the 50-day and 200-day EMAs, confirming the bullish price trends.

An XRP return to the Monday high of $0.6672 would support a move toward the $0.7047 resistance level.

However, a fall through the $0.6354 support level would give the bears a run at the 50-day EMA ($0.6073).

The 4-hourly RSI, with a reading of 63.53, indicates an XRP move to the $0.68 handle before entering overbought territory.