XRP News: SEC v Ripple Negotiations, SEC v Coinbase, and Crypto-Spot ETFs in Focus

Key Insights:

• XRP rallied 4.80% on Monday, ending the session at $0.5478.
• Crypto-spot ETF news updates will influence the buyer appetite on Tuesday.
• SEC v Ripple and Coinbase case-related news also warrants consideration.

The Monday Overview

On Monday, XRP rallied 4.80%. Following a 0.27% gain on Sunday, XRP ended the day at $0.5478.

Optimism Toward an SEC v Ripple Settlement in Focus

XRP joined the broader crypto market in positive territory on Monday. Optimism toward the SEC approving BTC-spot ETFs fueled demand for cryptos.

However, hope for a settlement in the ongoing SEC v Ripple case contributed to the three-day winning streak. Last week, the SEC dropped the charges against Brad Garlinghouse and Chris Larsen. Significantly, the SEC also advised the court of ongoing efforts for the SEC and Ripple to agree on remedies to charges against Ripple.

Specifically, the court filing stated the charges related to Section 5 violations concerning its institutional sales of XRP.

One camp believes the SEC wants to settle the remaining charges to expedite an appeal of the Programmatic Sales ruling.

Others saw Ripple in a stronger position, considering the Hinman speech-related documents.

The SEC asked the court to give the two parties until November 9 to find remedies to the remaining charges. SEC v Ripple case-related news will remain a focal point for investors. Progress toward a settlement and an SEC agreement without appealing the Programmatic Sales ruling would be a boon for XRP.

Beyond the SEC v Ripple case, the SEC v Coinbase (COIN) will continue to garner investor interest.

SEC v Coinbase: A Significant Case for the Crypto Market

Investors await a court ruling on the Coinbase motion to dismiss (MTD). Coinbase argues the SEC lacks the statutory power to regulate the crypto space.

As background, the SEC charged Coinbase with allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additional charges included the unregistered offering and selling of securities in connection with its staking-as-a-service program.

CryptoLaw US founder and Amicus Curiae attorney John E. Deaton previously shared his views on the likely influence of the SEC v Coinbase case on the Ripple case.

On Monday, Deaton had this to say about the SEC v Coinbase case,

“This Coinbase Motion to Dismiss has real teeth to it. Usually, I would argue an MTD at this stage has less than a 5% chance at success. I believe Judge Failla could issue a huge victory to Coinbase and the crypto industry at large by deciding, as a matter of law, Howey does not apply to secondary market blind bid/ask transactions.”

Deaton went on to explain,

“Judge Failla could take similar reasoning employed by Judge Torres in Ripple and rule that b/c the buyer doesn’t know who’s selling when purchasing on Coinbase, coupled with the fact that the SEC didn’t plead facts similar to those pled in Terra Labs, Howey does not apply.”

Deaton stated that the SEC allegations are different from the Terra Labs case. The difference should allow a Judge to find that Howey doesn’t apply to blind bid/ask transactions made on an exchange.

The CryptoLaw US founder considers the outcome of the SEC v Coinbase case significant to the US crypto market, saying,

“But if Coinbase wins a split decision as I’ve articulated, it will be GAME Over for Gary Gensler. Judge Failla granting Coinbase’s MTD (even partially) is the only thing I see causing a pivot by Gensler and Elizabeth Warren.”

XRP Price Action

Daily Chart

XRP sat above the 50-day and 200-day EMAs, affirming bullish price signals. The 50-day EMA continued to converge on the 200-day EMA. A 50-day EMA cross through the 200-day EMA would confirm a near-term bearish trend reversal.

An XRP breakout from the $0.5470 resistance level would support a move to the trend line. A break above the trend line would give the bulls a run at the $0.5835 resistance level.

SEC v Ripple and Coinbase case-related news will continue to influence near-term XRP trends. However, XRP will remain responsive to crypto-spot ETF-related news.

A break below the $0.5470 support level would bring the EMAs into play. An XRP fall through the EMAs would give the bears a run at the $0.5042 support level.

The 66.00 14-day RSI reading suggests a move to the trend line before entering overbought territory.

4-Hourly Chart

In the 4-hourly Chart, XRP remains above the 50-day and 200-day EMAs, reaffirming bullish price signals. Significantly, the 50-day EMA crossed through the 200-day EMA, affirming the near-term bullish trend.

An XRP break above the trend line would support a move to the $0.5835 resistance level.

However, a fall through the $0.5470 support level would bring the EMAs into play.

The 4-hourly RSI, with a reading of 79.28, shows XRP in overbought territory.