XRP News: SEC Delay Strikes Again, Ripple and Market React

Bob Mason
Published: Sep 1, 2023, 01:10 GMT+00:00

The SEC v Coinbase case takes a turn, while Ripple prepares its opposition to the SEC's interlocutory appeal, impacting XRP and the broader market.

XRP Tech Analysis - FX Empire

In this article:

Key Insights:

  • XRP slides 3.35% to $0.5110, hitting sub-$0.50 for the first time since Aug 18 amid market negativity.
  • Ripple faces a court deadline for filing opposition to the SEC’s interlocutory appeal on programmatic sales.
  • Judge Failla’s Uniswap case dismissal brings hope to the SEC v Coinbase case, hinting at a crypto-friendly stance.

The Thursday Overview

On Thursday, XRP slid by 3.35%. Following a 2.11% loss on Wednesday, XRP ended the day at $0.5110. The second session in the red led XRP briefly to sub-$0.50 for the first time since August 18.

SEC Sends XRP and the Broader Market Deep into Negative Territory

The dust had barely settled from the Grayscale Court victory before the SEC delivered a blow.

On Thursday, the SEC kicked the proverbial BTC-Spot ETF can further down the road. According to the SEC filings, the SEC has postponed rulings on BTC-Spot ETFs under the Securities Exchange Act of 1934 for a period of 21 days.

Applicants, including Blackrock (BLK), Invesco, Valkyrie, and WisdomTree must now wait until mid-October for the SEC to approve, disprove, or ‘institute proceedings to determine whether to disprove the applications.’

However, there were no SEC v Ripple appeal-related updates to distract investors from the latest SEC move against spot ETFs. The crypto community responded to the news, with CryptoLaw founder and Amicus Curiae attorney John E. Deaton asking,

“Anyone really think Gary Gensler wasn’t going to delay for the sake of delay?”

SEC v Coinbase Takes a Turn Following Judge Failla Summation

This week, Judge Failla issued a dismissal order of the case Uniswap users brought against Uniswap for listing scam tokens. Judge Failla is also the Judge presiding over the SEC v Coinbase (COIN) case. Her view on cryptos and securities should give investors much-needed comfort.

CryptoLaw founder John E. Deaton shared an excerpt from the Court ruling, saying,

“Paul Grewal and Brian Armstrong should feel good right now. I honestly could see her saying the same thing about not extending securities laws to assets on exchanges in blind bid/ask transactions.”

While the SEC filed a motion for interlocutory appeal against the SEC v Ripple ruling on programmatic sales, it appears the Ripple ruling is resonating.

The SEC filed charges against Coinbase in June for operating as an unregistered securities exchange, broker, and clearing agency. In August, Republican Senator Cynthia Lummis and other parties filed Amicus Curiae briefs to Judge Failla, calling for a dismissal.

Ripple Chief Legal Office Stuart Alderoty had this to say about the SEC and a WSJ opinion piece on SEC Chair Gensler,

“Lawyers should never again be told ‘don’t poke the bear’ since it seems that is the only way to stop these unelected bureaucrats from pushing their failed political agendas.”

The Friday Session

The Court deadline for Ripple to file its opposition to the SEC motion for interlocutory appeal has arrived. Ripple must file its opposition by today. The SEC then has until September 8 to file a response, after which time Judge Torres will rule.

We expect XRP sensitivity to the opposition filing and the content. A convincing argument should deliver XRP price support.

While Ripple will be the focal point, investors should monitor SEC v Coinbase case-related updates. Judge Failla has yet to rule on the motion to dismiss the SEC charges against Coinbase. A dismissal would be a boon for XRP and the broader market.

XRP Price Action

Weekly Chart turns bearish.
XRPUSD 010923 Weekly Chart

Daily Chart

XRP fell through the 200-day EMA and broke under the trend line. The denied recovery through the trend line signals a downward bias. Uncertainty surrounding the SEC motion for interlocutory appeal leaves XRP on the back foot.

Failure to break through the trend line would leave the $0.5042 support level and sub-$0.50 in play. However, a favorable market response to the Ripple filing and Court rulings in ongoing SEC cases would support a run at the $0.5470 resistance band. A return to $0.52 would give the bulls a run at the 50-day EMA.

Considering the 34.40 14-4H RSI reading, XRP has room to drop before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 010923 Daily Chart

4-Hourly Chart

XRP sits below the 50-day EMA and the trend line this morning. This morning, XRP retested the trend line and got denied, leaving XRP at risk of further losses. However, the Ripple opposition filing could support a breakthrough the trend line to give the bulls a run at the 50-day EMA.

Considering the 14-4H RSI reading of 35.45, XRP has room to slide before entering oversold territory.

XRP 4-Hourly Chart affirms bearish price signals.
XRPUSD 010923 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.