XRP News: Ripple Gains Momentum, but Court Ruling on Coinbase Looms Large

Key Insights:

• On Friday, XRP showed resilience, posting a 0.56% gain after a 1.90% fall on Thursday.
• Ripple CLO Stuart Alderoty and ex-SEC Chief John Reed Stark spar over the implications of recent XRP court decisions.
• Awaiting pivotal decisions. The legal outcome of the SEC v Coinbase case may influence SEC plans.

The Friday Overview

On Friday, XRP gained 0.56%. Partially reversing a 1.90% loss from Thursday, XRP ended the day at $0.5254.

Ex SEC Official and Ripple CLO Disagree on the Impact of the XRP Ruling

Reaction to the court ruling on the SEC motion for interlocutory appeal continued to draw interest on Friday.

Prompted to respond to the court ruling, former SEC Chief of the Office of Internet Enforcement, John Reed Stark, said,

“Judge Torres’s order denying the SEC the opportunity for an interlocutory appeal has also decreed that her previous summary judgment decision should not be cited as precedent (unless the facts of the new case are exactly the same).”

Ripple Chief Legal Officer Stuart Alderoty responded to Stark’s comments, saying,

“Agree to disagree on the legal impact of Judge Torres’s rulings, but you also seem to be saying that XRP uniquely stands as the only digital asset (other than BTC) with judicial clarity as a non-security. There we are on the same page.”

Stark responded to Alderoty’s comments, reemphasizing Judge Torres’s opinion vis-à-vis precedent, saying,

“[…] I read the order and it struck me as unusual that a judge would go to such lengths to caution against citing a decision as precedent. In fact, I can’t recall reading an opinion in a securities case so extreme along those lines.”

Stark went on to say,

“But then again, if Judge Torres admitted that her decision had meaningful precedential value, then that would weigh in favor of the SEC’s right to an interlocutory appeal. Of course, I also believe that Judge Torres’s summary judgment decision will be overturned.”

Stark concluded,

“[…] with respect to this week’s decision, there seems to be very little wiggle room on the issue of precedential value, at least IMHO.”

John E. Deaton, Amicus Curiae attorney to 75,000 XRP holders, previously emphasized one area of Torres’s opinion, saying,

“She stated that’s she never said no digital asset could ever be a security sold on an exchange.”

Considering the comments of John E. Deaton and John Reed Stark, the SEC must win its case against Coinbase (COIN).

Ruling on the Coinbase Motion to Dismiss Will Be Significant

From a US legal and regulatory standpoint, the outcome of the SEC v Coinbase case will likely have far more significant ramifications.

Coinbase, the SEC, and the crypto community await a court ruling on the Coinbase motion to dismiss (MTD).

Deaton believes if Judge Katherine Failla grants the Coinbase MTD, the SEC may have to settle the Ripple case.

The SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency, among other charges.

XRP Price Action

Daily Chart

XRP remained below the 50-day EMA while sitting above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

A breakout from the 50-day EMA would give the bulls a run at the trend line and the $0.5470 resistance level. Selling pressure will likely intensify at $0.5460. The trend line is confluent with the resistance level.

Chatter and updates on the ongoing SEC v Ripple and Coinbase cases will influence investor sentiment.

Failure to move through the 50-day EMA would support an XRP break below the 200-day EMA. A drop below the 200-day EMA would bring the $0.5042 support level into plays.

The 53.98 14-Daily RSI reading supports a return to the trend line and $0.5470 resistance level before entering overbought territory.

4-Hourly Chart

In the 4-hourly Chart, XRP hovers above the 50-day and 200-day EMAs, sending bullish price signals.

A breakout from $0.53 would give the bulls a run at the trend line and $0.5470 resistance level.

However, a fall through the 50-day and 200-day EMAs would bring the $0.5042 support level into play.

The 14-4 Hourly RSI 53.09 reading supports an XRP move to the trend line and $0.5470 resistance level before entering overbought territory.