XRP News: Ripple’s Reaction to SEC’s Latest Target, Stoner Cats NFT Controversy

Key Insights:

• XRP experienced a noteworthy 1.24% gain on Thursday, settling at $0.4894.
• SEC’s recent actions against Stoner Cats 2 LLC underscores its aggressive stance on digital assets.
• Ripple CLO Alderoty suggests that the SEC actions against digital tokens may be more PR than substance.

The Thursday XRP Overview

On Thursday, XRP gained 1.24%. Following a 0.69% rise on Wednesday, XRP ended the day at $0.4894.

Ripple CLO Stuart Alderoty Reacts to SEC Move Against Stoner Cats

There were no court rulings for investors to consider on Thursday. The markets await Judge Torres’s ruling on the SEC motion for interlocutory appeal. If Judge Torres denies the SEC motion, it would be another moment of reflection for the SEC.

A ruling favoring Ripple would remove the ambiguity regarding when XRP would fall into the SEC securities basket.

While the SEC and Ripple await the Court ruling, the SEC continued to target the digital asset space. On Wednesday, Stoner Cats 2 LLC became the latest to fall foul of the SEC.

The SEC announced the charges against Stoner Cats 2 LLC, saying,

“The SEC charged Stoner Cats 2 LLC with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs) that raised approximately $8 million from investors to finance an animated web series called Stoner Cats.”

Ripple Chief Legal Officer Stuart Alderoty reacted to the latest SEC move, saying,

“I don’t know all the facts here, but I do know that a settlement to avoid a crushing SEC process without ‘admitting or denying’ anything is binding on no one. A cynic would call it a PR stunt. What matters is that when seriously challenged in Court, the SEC continues to lose.”

Coinbase and Ripple Rulings Are Pivotal for the US Digital Asset Space

The Judge Torres ruling on XRP and Programmatic Sales has not forced the SEC to rethink its approach to the digital asset space.

However, the narrative could change if Judge Torres denies the SEC motion for interlocutory appeal. More significantly, there is the ongoing Coinbase (COIN) case to consider. The markets await a court ruling on the Coinbase motion to dismiss (MTD).

If Judge Failla grants the MTD, crypto legal expert John E. Deaton expects Capitol Hill to force the SEC to settle the Ripple case. More significantly, lawmakers might end the regulation by enforcement campaign, which continues to stall innovation across the US digital asset space.

The significance of the two ongoing cases leaves XRP and the broader market in limbo.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, reaffirming bearish price signals. Court rulings in favor of Coinbase and Ripple would be a catalyst for a breakout. An XRP break above the $0.5042 resistance level would support an XRP move to the 200-day EMA and the trend line.

Selling pressure will intensify at $0.5210, with the 200-day EMA confluent with the trend line.

A lack of Court rulings would leave XRP in the hands of the broader market. An XRP slide to $0.45 would signal a move toward the $0.4322 support level.

The 37.78 14-Daily RSI reading shows XRP can fall to sub-$0.48 before reentering oversold territory.

4-Hourly Chart

XRP hovers above the 50-day EMA while remaining below the 200-day EMA. The EMAs send bullish near-term but bearish longer-term price signals. Avoiding the 50-day EMA would support an XRP move to the $0.5042 resistance level.

However, a break below the 50-day EMA would bring $0.45 and the $0.4322 support level into play.

The 14-4 Hourly RSI 56.46 reading shows XRP can target the $0.5042 resistance level before entering overbought territory.