Recent US lawmaker scrutiny of SEC practices in the courts has offered XRP price support. However, SEC plans to appeal remain a headwind.
XRP gained by 0.38% on Sunday, closing the session at $0.5261.
Positive sentiment from across the broader crypto market contributed to the gains.
On Monday, SEC v Ripple case-related news and rulings from the SEC v Coinbase case need consideration.
The Sunday Overview
On Sunday, XRP gained 0.38%. Partially reversing a 0.40% loss from Saturday, XRP ended the session at $0.5261.
SEC v Ripple: Remedies Related Discovery Enters Its Final Week
On Sunday, there was no SEC v Ripple case-related news to consider. However, the SEC and Ripple are progressing toward the end of remedies-related discovery. After concluding remedies-related discovery, the SEC and Ripple will submit remedy-related briefs regarding breaching Section 5 of the Securities Act for selling XRP to institutional investors.
While a punitive disgorgement could impact XRP, SEC plans to appeal the Programmatic Sales ruling remain an XRP headwind. Judge Analisa Torres could decide on the penalty for breaching section 5 this summer. An SEC appeal against the Programmatic Sales ruling could extend into 2025 and possibly 2026.
Despite the lack of SEC v Ripple case-related activity, the SEC was under fire over the weekend.
SEC Scrutiny Continues
Ripple Chief Legal Officer Stuart Alderoty responded to a post on X (formerly Twitter) about the SEC and an exodus of senior enforcement lawyers, saying,
“Will any of these lawyers be brave enough to blow the whistle and share details about Gensler’s “controversial leadership” with the SEC’s Office of Inspector General or with the House Committee on Oversight and Accountability?”
Charles Gasparino of Fox News posted the scoop about SEC enforcement lawyers saying,
“SCOOP: SEC bracing for major exodus among senior enforcement lawyers in its crypto assets and cyber unit, according to officials at major law firms who have seen several of the resumes. Fox Business is withholding names to protect privacy; the moves suggest that the bleed of senior staff under Gary Gensler’s controversial leadership of the agency isn’t letting up.”
An exodus of senior enforcement lawyers could debilitate the ability to regulate by enforcement. The SEC v Debt Box case and scrutiny from US lawmakers may convince others to find alternative employment.
In January, the SEC filed a Motion to Dismiss the charges against Debt Box. The SEC dropped the charges against Debt Box after a highly publicized court order. In December, the court ordered,
“The SEC to show cause why it should not be sanctioned for making false and misleading representations to the court.”
Last week, US Senators sent SEC Chair Gary Gensler a letter, raising concerns about the Debt Box case. The recent scrutiny could influence SEC cases against other crypto firms, including Ripple. The US Senators wrote,
“Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests other enforcement cases brought by the Commission may be deserving of scrutiny.”
XRP Price Action
XRPUSD 120224 Weekly Chart
XRP remained below the 50-day and 200-day EMAs, affirming bearish price signals.
A move through the $0.5470 resistance level and the 50-day EMA would give the bulls a run at the 200-day EMA. Selling pressure could intensify at the $0.5470. The 50-day EMA is confluent with the $0.5470 resistance level.
SEC v crypto case-related updates and SEC activity need consideration.
However, a break below the $0.52 handle would support a fall to the $0.5042 support level.
The 14-day RSI reading, 48.82, suggests an XRP fall through the $0.50 handle before entering oversold territory.
XRPUSD 120224 Daily Chart
On the 4-hourly, XRP hovered above the 50-day while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.
An XRP breakout from the 200-day EMA would bring the $0.5470 resistance level resistance level into play.
However, a fall through the 50-day EMA would give the bears a run at the $0.5042 support level.
The 4-hourly RSI, with a reading of 59.19, suggests an XRP break above the 200-day EMA before entering the overbought 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.