XRP experiences a dip, ending Wednesday at $0.5034 after Tuesday’s 0.57% decline.
Ripple’s technology finds favor abroad, with SBI expanding its remittance services in Asia.
An imminent SEC response could dictate the future of XRP, as the ripple effect continues.
Wednesday’s Overview of XRP
On Wednesday, XRP declined by 0.40%. Following a 0.57% loss on Tuesday, XRP ended the day at $0.5034.
SEC Court Filing Imminent as Investors Await Step 2 of the Appeals Process
There were no SEC v Ripple case-related updates to influence investor sentiment on Wednesday. However, the SEC must file any response to the Ripple opposition filing by tomorrow. On September 1, Ripple vigorously opposed the SEC motion for interlocutory appeal.
The Ripple defense team offered a convincing argument. The SEC must address the strong argument presented in the Ripple filing. Failure to file a response would likely end any SEC hopes of overturning the Programmatic Sales ruling.
XRP has moved sideways since the Ripple opposition filing, demonstrating the effects of the SEC v Ripple case on XRP price trajectories.
Ripple Wins Big in Japan
While US regulators impede innovation in the digital asset space, their counterparts overseas are more receptive to Ripple’s advances.
On Wednesday, news hit the wires of Japan’s SBI expanding the Ripple technology for remittances to financial institutions in Indonesia, the Philippines, and Vietnam.
“We will start providing international remittance services using the crypto asset XRP to bank accounts in the Philippines, Vietnam, and Indonesia from this month.”
The announcement went on to say,
“SBI Remit has been using Ripple Payments provided by Ripple for its international remittance services since 2017.”
Despite the positive news, XRP ended the Wednesday session in negative territory.
The Thursday Session
The deadline for the SEC to file a response to the Ripple opposition filing is rapidly approaching. While we don’t expect the SEC to file a response to the Ripple opposition filing one day early, investors should monitor the news wires for updates relating to the motion for interlocutory appeal.
After the SEC responds to the Ripple filing, Judge Torres must rule on the SEC motion for interlocutory appeal. It is unclear how long the deliberation will last, leaving XRP in limbo.
However, crypto market conditions could change significantly. The Coinbase (COIN) team and the SEC await the Judge Failla ruling on a Coinbase motion to dismiss (MTD).
Last month, Republican Senator Cynthia Lummis, among others, filed Amicus Curiae briefs calling on Judge Failla to dismiss the case.
Beyond the two cases, investors should monitor the news wires for BTC-spot ETF news and SEC activity.
XRP Price Action
XRPUSD 070923 Weekly Chart
XRP hovered at the $0.5042 support level this morning. A breakout from the $0.5050 would give the bulls a run at the trend line. However, XRP would need favorable news from the SEC v Ripple or Coinbase cases to support a break above the trend line.
Failure to break out from the $0.5042 support level would leave the bears in control. A return to sub-$0.48 would bring the $0.4322 support level into play.
Considering the 34.19 14-Daily RSI reading and the bearish EMA indicators, XRP can target sub-$0.48 before entering oversold territory.
XRPUSD 070923 Daily Chart
A move through the 50-day EMA would give the bulls a run at the trend. However, the bulls need positive updates from the Ripple and Coinbase cases to support a break above the trend line.
Failure to move through the 50-day EMA would leave XRP under pressure.
The 14-4H RSI 44.77 reading signals XRP significantly more downside before entering oversold territory.
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.