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XRP News: Ripple Retargets the US Market as the SEC v Ripple Case Progresses

By:
Bob Mason
Published: Feb 4, 2024, 05:08 UTC

XRP extended its winning streak to three sessions on Saturday. Ripple plans to target the US market with its payment platform contributed to the gains.

XRP News

Key Insights:

  • XRP rose by 1.57% on Saturday, ending the session at $0.5185.
  • Ripple updates on the US market contributed to the gains on Saturday.
  • On Sunday, US regulatory chatter and SEC v Ripple case-related news warrant investor attention.

The Saturday Overview

On Saturday, XRP rose by 1.57%. Following a 0.95% gain on Friday, XRP ended the Saturday session at $0.5185. Notably, XRP extended its winning streak to three sessions.

Ripple Payments News Offers XRP Price Support

Updates from the Ripple team drove buyer demand for XRP in the second half of the week.

Ripple Senior Director of Product Marketing – Payments posted an update on LinkedIn, saying,

“Building: 90% of our business is outside the United States. After being relatively quiet for the past 3 years in the US for Ripple Payments, we’re geared up to announce new product updates powered by our money transmitter licenses (MTLs) that cover the majority of US states.”

Ripple currently has most of its business outside of the US. In December 2020, the SEC filed charges against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen for failure to register XRP as a security. The SEC v Ripple case compelled Ripple to limit its operations in the US. However, the Programmatic Sales of XRP ruling has fueled demand for Ripple products.

In July, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The latest update suggests that the US market is revisiting Ripple payment solutions despite the lingering threat of an SEC appeal. Investors expect the SEC to appeal the Programmatic Sales ruling. In October, Judge Torres rejected the SEC Motion to file interlocutory appeal. The SEC must wait until the end of the ongoing SEC v Ripple case to file an appeal against the Programmatic Sales ruling.

In July, Judge Torres ruled Ripple breached Section 5 of the Securities Act for XRP sales to institutional investors. The SEC and Ripple are progressing through remedies-related discovery that must conclude by February 12.

The Motion to Compel and the Court Briefing Schedule

On conclusion of remedies-related discovery, the SEC must file its remedy brief by March 13. According to the Court Briefing Schedule, Ripple must file its remedy brief by April 12. The SEC must file any reply brief by April 19, after which the court will rule on the penalty for breaching Section 5 of the Securities Act.

Next week, Judge Torres could rule on the SEC Motion to Compel. The SEC filed the Motion to Compel on January 11, asking the court to order Ripple to provide,

  • Financial statements for 2022/23.
  • Post-complaint contracts governing XRP sales to institutional investors.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 040224 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP return to the $0.52 handle would support a move to the $0.5470 resistance level. A break above the $0.5470 resistance level would give the bulls a run at the 50-day and 200-day EMAs.

Investors should carefully consider US regulatory developments and updates related to the SEC v Ripple case.

However, a break below the $0.5042 support level would bring the $0.4700 support level into play.

The 14-day RSI reading, 40.28, suggests an XRP fall below the $0.49 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 040224 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered above the 50-day EMA while remaining below the 200-day EMA. The EMAs sent bullish nearer-term but bearish longer-term price signals.

An XRP move to the $0.52 handle would give the bulls a run at the $0.5470 resistance level.

However, a break below the 50-day EMA would support a fall through the $0.5042 support level. A fall through the $0.5042 support level would bring the $0.4700 support level into play.

The 4-hourly RSI, with a reading of 54.99, suggests an XRP move to the $0.5470 resistance level before entering the overbought territory.

XRP 4-Hourly Chart reaffirms bearish price signals.
XRPUSD 040224 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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