XRP News: SEC Ripple Case Casts Shadow on XRP Outlook, ETF Debate Rages On

Bob Mason
Published: Feb 23, 2024, 01:56 UTC

Key Points:

  • On Thursday, XRP fell by 1.56%, ending the session at $0.5411.
  • BTC-spot ETF net outflows and the ongoing SEC v Ripple case left XRP in negative territory.
  • On Friday, SEC v crypto, SEC activity, and BTC-spot ETF market flows need consideration.
XRP News

In this article:

The Thursday Overview

On Thursday, XRP fell by 1.56%. Following a 2.22% loss on Wednesday, XRP ended the Thursday session at $0.5411.

BTC-Spot ETF Market Sees Net Outflows

XRP continued to track the broader market on Thursday. The BTC-spot ETF market registered net outflows on Wednesday, impacting buyer demand for cryptos.

Flow data for Wednesday revealed net outflows for the first time since January 25.

Bitcoin (BTC) declined by 1.12% on Thursday, with the total market cap falling by 0.61% to $1,904 billion.

There were no SEC v Ripple case-related updates for investors to consider. Behind the scenes, the SEC and Ripple are preparing remedy-related briefs. The SEC and Ripple must file remedy-related briefs by March 13 and April 12, respectively.

The briefs give the SEC and Ripple the platform to argue for and against a punitive penalty for XRP sales to institutional investors.

While investors are hopeful the court will not impose a punitive penalty, SEC plans to appeal against the Programmatic Sales of XRP ruling remains an XRP headwind. XRP extended its losing streak to three sessions despite upbeat Ripple-related news and XRP-spot ETF chatter.

Ripple CEO Brad Garlinghouse Talks XRP-Spot ETFs

This week, Ripple CEO Brad Garlinghouse spoke with Bloomberg about the SEC v Ripple case, crypto-spot ETFs, the Standard Custody acquisition, and ongoing regulatory issues in the US.

Garlinghouse had this to say about the dispute with the SEC,

“Prior to the case, we had been advocating for more clarity around the rules and regulations. And the good news has been other countries around the world have leaned into that […]. The SEC, frankly, has just hired more litigation for what we call regulation through enforcement and really just started suing lots of people. What’s unfortunate is that they have lost consistently.”

Garlinghouse went on to discuss SEC cases against other crypto firms, saying,

“ From my point of view, the SEC has lost consistently. They lost the Grayscale case. I think, if you’re following the Coinbase case, the tone from the Judge is pretty skeptical about the SEC’s arguments. It stops, I think when the SEC either realizes they’re losing consistently or you have Congress lean in and write new legislation. That’s probably going to be hard in Election Year. Maybe we’ll see legislation around stablecoins this year, but I’m hopeful, and we’ll continue to advocate in Washington.”

XRP-Spot ETFs Remain Hotly Debated

Talking about the buzz surrounding the launch of an XRP-spot ETF, Garlinghouse said,

“I think we will see other ETFs. When we will see them is hard to predict. The sad reality of what we saw with the Bitcoin ETF is it was only because the courts forced the SEC’s hand, and really, Chair Gensler’s hand, that we saw that finally come to fruition. In my opinion, it makes these markets safer. It makes them more robust and so, this is good for the investment community to kind of lean into that.”

Asked whether Ripple is in talks with the largest issuers, particularly BlackRock (BLK) to get this done, Garlinghouse responded,

“I’m not going to comment on that, and I know BlackRock has said some things publicly. We think it makes sense for the XRP community overall.”

Ripple Targets Crypto Custody Space

Garlinghouse also responded to questions about the acquisition of Standard Custody, saying,

“We think there are some basic building blocks around crypto that are important to make crypto successful. Custody is an important part of that. For institutions to be able to custody their own as well as their customers’ digital assets, we think it is very important. We made two acquisitions over the last year in this space. One was a company in Switzerland and then more recently, Standard Custody.”

Crypto, Politics, and Senator Elizabeth Warren

Discussing crypto and politics, Garlinghouse highlighted CryptoLaw US founder John E Deaton running for Senate against Senator Elizabeth Warren.

According to media reports, Senator Warren is frantically trying to raise campaign funds to fend off Deaton. In an interview with Fox Business, Gasparino wondered why Senator Warren worries about John Deaton. Ousting Senator Warren would be a boon for the crypto space.

Senator Warren is behind the Digital Asset Anti-Money Laundering Act. The bill aims to impose banking-style anti-money laundering and countering the financing of terrorism (CFT) frameworks for the digital asset space.

Significantly, Senator Warren used incorrect reports about terrorist groups adopting crypto to drive support for the bill.

XRP Price Action

Weekly Chart sends bearish near-term price signals.
XRPUSD 230224 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200 EMAs, affirming bearish price signals.

An XRP breakout from the $0.5470 resistance level and 50-day EMA would support a move to the 200-day EMA. A break above the 200-day EMA would bring the $0.5835 resistance level into view.

SEC v crypto case-related news needs consideration.

However, a break below the $0.5350 handle would give the bears a run at the $0.5042 support level.

The 14-day RSI reading, 49.98, indicates an XRP fall to the $0.5042 support level before entering oversold territory.

XRP Daily Chart sends bearish price signals.
XRPUSD 230224 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP hovered below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the 200-day EMA would support a move to the $0.5470 resistance level and 50-day EMA. A break above the 50-day EMA would give the bulls a run at the $0.5835 resistance level.

However, a drop below the $0.53 handle would bring the $0.5042 support level into play.

The 4-hourly RSI, with a reading of 42.38, indicates an XRP drop below the $0.53 handle before entering oversold territory.

XRP 4-Hourly Chart affirms bearish price signals.
XRPUSD 230224 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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