XRP News: SEC Appeal Speculation Leaves XRP on the Defensive

Bob Mason
Published: Oct 21, 2023, 01:41 GMT+00:00

XRP bucked the broader crypto market trend on Friday, ending the day in negative territory. Uncertainty about the SEC v Ripple case tested buyer appetite.

XRP News

In this article:

Key Insights:

  • XRP declined by 1.04% on Friday, ending the session at $0.5150.
  • Speculation surrounding SEC plans to expedite the Programmatic Sales appeal process weighed on buyer appetite.
  • Progress toward a briefing schedule to discuss the pending charges against Ripple will remain a focal point.

The Friday Overview

On Friday, XRP declined by 1.04%. Partially reversing a 6.62% rally from Thursday, XRP ended the day at $0.5150.

Appeal Jitters Leave XRP in Negative Territory

Investors showed a mixed reaction to the news of the SEC dropping the charges against Chris Larsen and Brad Garlinghouse.

XRP ended the Friday session in negative territory despite the filing showing an SEC intent to arrange a briefing schedule about the pending charges against Ripple. While XRP saw red, the total crypto market cap increased by 2.55% to $1,101 billion on Friday.

Speculation of SEC plans to expedite an appeal impacted buyer appetite on Friday. The XRP community questioned the SEC’s tactics and whether the latest twist was a plan to progress to the appellate courts.

CryptoLaw US founder and Amicus Curiae attorney John E. Deaton referenced the SEC v LBRY case saying,

“Arguing over 23 million took 8 months. In the Ripple case, we’re talking about $770M. Ripple will argue ODL transactions should be exempt, along with legitimate business costs (salaries, travel, insurance, etc). The SEC wants the whole $770M to make up for being embarrassed, including having to dismiss the bogus charges against the executives, it could never prove.”

Deaton added,

“There will be no immediate appeal.”

Deaton explained that the penalty phase of the case must occur first. The SEC v Ripple trial will begin in April 2024.

While there is the threat of an SEC appeal, progress toward a briefing schedule could be pivotal. Between now and November, the possibility of the SEC appealing the court ruling on Programmatic Sales may impact investor sentiment.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 211023 Weekly Chart

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending bearish price signals. Significantly, the 50-day EMA narrowed to the 200-day EMA. A bearish cross would intensify selling pressure.

An XRP fall through the $0.5042 support level would give the bears a run at the $0.4700 support level.

Speculation about SEC plans to appeal the Programmatic Sales ruling will likely remain a focal point.

However, a break above the EMAs would support a move toward the $0.5470 resistance level.

The 54.05 14-day RSI reading indicates a move through the EMAs and a return to $0.54 before entering overbought territory.

XRP Daily Chart affirmed bearish price signals.
XRPUSD 211023 Daily Chart

4-Hourly Chart

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

An XRP return to $0.52 would support a move toward the $0.5470 resistance level.

However, a break below the 200-day EMA and the $0.5042 support level would bring the 50-day EMA into play. Significantly, buying pressure will likely intensify at $0.5050. The 200-day EMA is confluent with the $0.5042 support level.

The 4-hourly RSI, with a reading of 60.29, indicates an XRP return to the $0.53 handle before entering overbought territory.

XRP 4-Hourly Chart sends bullish price signals.
XRPUSD 211023 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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