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XRP News: Ripple vs. SEC Case Faces Delays Amidst Threat of a US Shutdown

By:
Bob Mason
Published: Sep 23, 2023, 01:54 GMT+00:00

The looming US government shutdown raises uncertainties around the SEC v Ripple lawsuit, potentially delaying rulings and leaving XRP forecasts in limbo.

XRP News

In this article:

Key Insights:

  • XRP recovered with a 1.05% gain on Friday, offsetting some of its previous 2.74% loss.
  • A looming US government shutdown threatens to disrupt the ongoing SEC v Ripple lawsuit.
  • A prolonged shutdown could see the SEC reducing operations, furloughing 90% of its staff.

The Friday Overview

On Friday, XRP gained 1.05%. Partially reversing a 2.74% loss on Thursday, XRP ended the day at $0.5123.

SEC v Ripple Case May Hit Pause on US Government Shutdown

The threat of a lengthy US government shutdown continues to rise as Congress fails to deliver funding for the new fiscal year, starting October 1, 2023.

According to Reuters, Federal courts have sufficient funds to remain open until at least October 13. After October 13, the courts will likely reduce activity. The US District Court for the Southern District of New York is hearing the SEC v Ripple case.

An extended shutdown could delay a ruling on the SEC motion for interlocutory appeal and leave XRP investors in limbo for an unknown period.

A shutdown would also impact the Securities and Exchange Commission. The SEC would suspend most activities and furlough about 90% of its 4,600 employees.

This week, SEC Chair Gary Gensler spoke to Bloomberg about cryptos and securities and the impact of a government shutdown, saying,

“We are appropriated agencies and so, the public should understand that we will largely be a skeletal staff under the laws. And so, the normal oversight we have on markets will not be possible.”

There were no court rulings on the SEC’s motion for an interlocutory appeal to influence investor sentiment. It is unclear whether the courts will expedite court rulings that could face a lengthy delay in the case of a government shutdown.

The Saturday Session

SEC v Ripple and SEC v Coinbase (COIN) case-related updates need consideration. The markets remain sensitive to updates, with investors also needing to monitor the news wires for a ruling on the Binance motion to dismiss.

However, crypto-spot ETF-related news will also influence buyer appetite.

XRP Price Action

Weekly Chart sends bullish price signals.
XRPUSD 230923 Weekly Chart

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, affirming bearish price signals. A break above the 200-day EMA would support an XRP move to the trend line and 50-day EMA. Selling pressure will intensify at $0.5320, with the 50-day EMA confluent to the trend line.

However, a fall through the $0.5042 support level would give the bears a run at $0.48.

The 49.42 14-Daily RSI reading supports an XRP break below the $0.5042 support level before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 230923 Daily Chart

4-Hourly Chart

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

An XRP break below the 50-day EMA and $0.5042 support level would bring sub-$0.48 into play. Buying pressure will likely build at $0.5060, with the 50-day EMA confluent to the $0.5042 support level.

A break above the 200-day EMA would support an XRP move to the trend line.

The 14-4 Hourly RSI 52.65 reading supports an XRP break above the 200-day EMA before entering overbought territory.

XRP 4-Hourly Chart sends bullish near-term price signals.
XRPUSD 230923 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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